86 (Unit: Million Baht) Consolidated financial statements 2020 Insurance contract liabilities for long - term contracts Change Gross reinsurance increase (decrease) Net reinsurance increase (decrease) Profit before tax increase (decrease) Equity increase (decrease) Mortality rate Increase 10% 17 17 (17) (17) Expenses rate Increase 10% 9 9 (9) (9) Lapse and surrender rates Increase 10% (27) (27) 27 27 Discount rate Increase 0.10% (19) (19) 19 19 Mortality rate Decrease 10% (17) (17) 17 17 Expenses rate Decrease 10% (9) (9) 9 9 Lapse and surrender rates Decrease 10% 28 28 (28) (28) Discount rate Decrease 0.10% 19 19 (19) (19) 25.2 Loss reserves and outstanding claims (Unit: Million Baht) Consolidated financial statements 2021 2020 Balance - beginning of the year 1,839 1,880 Claim expenses for the year 4,035 4,611 Change in loss reserves and outstanding in claims and assumptions 629 205 Claim expenses paid during the year (4,620) (4,857) Balance - end of the year 1,883 1,839 Principles and assumptions used in the assessment of loss reserves and outstanding claims Reserve for insurance liabilities estimates incorporate a number of uncertain elements and actual results may differ from expectations due to fluctuations. However, the estimates were made using an actuarial method, which is a generally accepted method, and efforts have been made to set assumptions and reduce uncertainty as far as possible. In general, the estimates do not take into account catastrophes, and insurance contract liabilities are extinguished upon completing the claims settlement. Details of assumptions used in calculating the reserve for liabilities are assumption relating to claims experience (including economic assumptions, loss development factors, historical claims paid and claims incurred pattern, allocated loss adjustment expenses, qualitative and quantitative factors which have been taken into consideration to produce incurred but not report claims (IBNR), provision for adverse deviations in accordance with announcement of relevant regulator, and assumptions of related expenses (unallocated loss adjustment expenses - ULAE). Insurance risk is the risk that fluctuations in the frequency and severity of incidents will deviate from the assumptions used in determining premium rates, calculating claims liabilities and the underwriting process. 302
RkJQdWJsaXNoZXIy ODEyMzQ3