Regulation 4 Determination of relative market share and amounts

(1)

An active insurer’s relative market share in the reference period is determined in accordance with paragraph (2) and the payment amount an active insurer must pay is determined in accordance with paragraphs (3) to (5).

(2)

For the purpose of these Regulations, relative market share in the reference period is to be treated as if it were the same as the relative market share for the calendar year two years before the reference period.

(3)

The payment amount an active insurer must pay in a financial year is to be determined by multiplying the total amount of the levy for that financial year by the figure for their relative market share for the calendar year two years before the reference period.

(4)

In this regulation “relative market share for the calendar year two years before the reference period” means A divided by B where—

(a)

“A” equals the individual gross written premium for that calendar year;

(b)

“B” equals the total gross written premium attributable to the active insurer whose individual gross written premium has been ascertained for the purpose of “A”.

(5)

In paragraph (4) where “A” cannot be ascertained^f1, an active insurer’s relative market share for the calendar year two years before the reference period is nil.

Annotations

Footnotes

f1: An example of where “A” cannot be ascertained is where an active insurer did not write premiums in that year.