Regulation 7 Estimated amount of claims outstanding where conditions in regulation 5 are not satisfiedI1
United Kingdom
This regulation applies in a case where any of conditions A to C in regulation 5 is not satisfied.
For the purposes of regulation 4, the amount of the liabilities in respect of claims outstanding arising from the general insurer’s general business is the general insurer’s undiscounted best estimate of the future cash flows in respect of claims outstanding.
For the purposes of paragraph (2)—
the reference to “best estimate” shall be construed as a reference to the mean of the distribution of the potential outcomes of the claims to which the estimate relates, and
the best estimate of the future cash flows must be the best estimate available at the time at which the technical provisions are adopted by the general insurer.