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CA-2.1.13

The premium basis calculationG for general insurance businessG is determined by applying the following formula:

Gross Premium Written X Reinsurance Allowance X Risk Factor (for each class of business)

Where:

Gross Premium Written =

Premium written in the financial year (or annualised where the financial year is other than 12 months)

Reinsurance Allowance (Premium basis) = (calculated on total business)

the higher of 0.5 or (Total Net Premium Written /Total Gross Premium Written)

Risk Factor =

Class of insurance Risk Factor (general insurance) Risk Factor (Category C1 captive) Risk Factor (Category C2 captive)
(a) Fire 15% 12% 12%
(b) Damage to property 15% 12% 12%
(c) Miscellaneous financial loss 15% 12% 12%
(d) Marine cargo, marine hull 20% 20% 20%
(e) Aviation 20% 20% 20%
(f) Motor 20% 20% 20%
(g) Engineering 20% 20% 20%
(h) Liability 20% 20% (Category C2) 20%
(i) Medical (short term ≤ 1 year) 20% 20% 20%
(j) Other 20% 20% 20%
Amended: January 2007
 Versions
(2 Versions)
 
Up to Jun 30 2007Jul 1 2007 onwards
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