10. 10.3 • • (b) Change in liability Change in liability Change in 2023 2022 Variable R'm % change R'm % change 5 383 5 017 10% 1 279 23.80% 1 605 32.00% 10% 2 394 44.50% 2 586 51.54% 10% 1 696 31.50% 921 18.36% -1% 1 755 32.60% 1 750 34.89% -10% 504 9.40% 329 6.56% 10% 1 376 25.60% 1 175 23.42% 10% 1 960 36.40% 1 124 22.40% Incurred but not reported (IBNR) The IBNR liability calculation is based on run-off tables using historical data from 2013 to 2023. Due to the short term over which these liabilities will be settled, no allowance is made for claims handling expenses, claims inflation, adjustments for trends, unusual claims or loss ratios. Furthermore, the IBNR liability is undiscounted. Assumptions, change in assumptions and sensitivities (continued) Change in assumptions The size of the sensitivities were chosen to illustrate the impacts for changes in key variables that would have a significant impact on the future bonuses, as well as mainly chosen to facilitate comparison with the sensitivities disclosed by other major insurers. The assumptions used to calculate the liabilities are updated annually to reflect current best estimates of future experience. Changes to the assumptions will result in changes to the amount of the liability for remaining coverage and incurred claims. The impact of the changes are offset against the allowance in the liability for future bonus allocations. Consequently the aggregate value of the policy liabilities will be unchanged as a result of changes to the assumptions. PPS Profit-Share accounts and Long-term insurance contract liabilities (continued) Worsening in mortality Worsening of morbidity rates The above analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated – for example, change in interest rate and change in market values; change in lapses and future mortality. Lowering of investment returns Lowering of terminations Worsening of maintenance expense level Worsening of expense inflation rate Liability Worsening of PI inception rate Sensitivity analysis Variable The following tables present the sensitivity in the key valuation assumptions of the value of the future bonuses included in the insurance contract liabilities disclosed in this note to movements in the assumptions used in the estimation of these liabilities. The impact of a deviation from the best estimate assumption for all future years on a per policy basis on the liability is shown. This basis differs from the IFRS17 basis and hence the liability is not included elsewhere in the financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2023 163 Notes to the Consolidated Financial Statements
RkJQdWJsaXNoZXIy MTY2ODY3Ng==