We use cookies to improve your website experience. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. By continuing to use the website, you consent to our use of cookies. Close

Liability Market

Liability Risk and Insurance

Liability Market

PRA writes to financial lines insurers over claims reserving

The UK’s Prudential Regulation Authority (PRA) has written to the chief risk officer (CRO) of financial lines insurers over reserving and claims experience. It said two of the areas of concern highlighted in a previous letter last year persist: bias in reserve estimates (over-focus on favourable claims development potential, despite evidence of worsening incurred claims experience), and possible weakening in case reserve estimates. It said its analysis indicates that reserving assumptions may have weakened over time, while data shows that the claims experience continues to deteriorate.

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, please enter your details below to log in.

Enter your email address to log in as a user on your corporate account.
Remember me on this computer

Not yet an i-law subscriber?

Devices

Request a trial Find out more