Výročná správa 2009 - Komunálna Poisťovňa

(All amount are in thousands of Euros, unless stated otherwise)Other short-term insurance contracts protect clients of the Company from the consequencesof events (such as death or disability), that would affect the ability of the client or his dependantsto maintain their current level of income.RevenuesPremium is recognized as revenue when due, and over the life of the policy. It is recognizedgross before the deduction of commissions. The portion of premium received on in-force contractsthat relates to unexpired risks at the balance-sheet date is reported as the unearned premiumreserve.Unearned premium reserveUnearned premium reserve contains a proportional part of stipulated premium, which is goingto be earned in the next one or more financial periods. It is quantified for each insurance contractseparately using the pro rata temporis (365-days) method, and is adjusted as a result of any variancesthat occurred during the time period set out in the insurance contract.Cost of claimsInsurance events costs are booked through the profit-and-loss statement in the same bookingperiod in which they occur on the basis of estimated liabilities needed for insurance compensation.They involve direct and indirect costs needed for settling insurance events, and they arisefrom events which have occurred up to the day of the financial statements, including those whichhave not been, up to that time, reported to the Company. The company does not discount liabilitiesfrom claims. Claims are estimated as follows:Claim reserveThe Company constitutes technical reserves for insurance performances needed for finalsettlement of all liabilities from insurance events that have occurred up to the date of the financialstatements and expected costs connected with settling these events up to the date of the financialstatements.A reserve for insurance performance from insurance events reported until the end of ordinaryaccounting period, but not yet settled in this period (Reported But Not Settled) takes into considerationall accessible information related to the relevant insurance event when initially booked. Afterreceiving additional information regarding this insurance event, the reserve is adjusted.The mathematical and statistical method based upon a triangular scheme called the Chain­-Ladder method is used when calculating technical reserve on insurance performance from insuranceevents that emerged, but have not been reported in the current accounting period. Prudentapproach is applied when calculating reserves (“tail” factor and non-discounted cash flows areused in justified cases). The Company does not use discounting of future premiums.These methods use historical experience with the development of insurance events, and itis anticipated that these patterns will repeat. Development can be different due to the followingreasons:• economic, legal, political and social trends;• a change in the settlement procedures for insurance events;• a change in the portfolio of products other than life insurance’ or• accidental divergences, including enormous losses.If any of these reasons are identified, modifications of the formula for calculating insurancereserves can take place.Ročná účtovná závierka a komentár I Company AccountsReserve for deficit in Motor Third Party Liability InsuranceThe liberalization of the motor third party liability insurance market in 1 January 2002 openedthe market of Motor Third Party Liability Insurance (MTPL) to commercial insurance companies.123