kontinuita - Komunálna Poisťovňa

NOTES TO
THE FINANCIAL
STATEMENTS
made for insurance contracts related to reaching certain
age so as to take into account future mortality improvements.
Disability, sickness rate, accident rate
Disability, sickness rate, and accident rate are derived
from studies summarizing experience in individual
risks, adjusted for the Company’s own experience.
Persistency
The Company reassesses its experience from recent
years and uses statistical methods to determine an appropriate
persistency rate. Persistency rates vary by
product type and policy duration. An allowance is then
made for any trends in the data to arrive at a best estimate
of future persistency rates that takes into account
the effective policyholders’ behaviour.
Renewal expense level and inflation
The current level of expenses is taken as an appropriate
expense base. Expense inflation is assumed to
be covered by an increase in the insurance portfolio.
Tax
It has been assumed that current tax legislation and
rates will remain unchanged.
(ii) Change in assumptions and sensitivity analysis
The following table shows the sensitivity of liabilities
from life insurance contracts to changes in basic assumptions
used when estimating their amount. As to
liabilities under long-term insurance contracts with
fixed and guaranteed terms, changes in assumptions
will not cause a change in the amount of liabilities from
insurance contracts, unless the change is material
enough to trigger an adjustment as a result of a liability
adequacy test. The following table shows the level
of individual basic assumptions that will trigger adjustments
to the amount of liabilities from insurance
contracts, and also quantifies these adjustments, depending
on a certain level of change in the given assumption
above the level that triggers an amendment
to the amount of liabilities.
Long-term insurance contracts with fixed and guaranteed terms:
Assumption in million of SKK
Change
in the assumption
Change in liabilities from Change in liabilities from
insurance contracts - 2008 insurance contracts - 2007
(in mio. of SKK)
(in mio. of SKK)
Hiher mortality +10% 6,5 18
Lower investment returns (0,1) % p. a. 36 37
Higher base renewal expense level +10% 17 19
Higher lapse rate +20% 13 15
KONTINUITA ANNUAL REPORT 155