Výročná správa 2009 - Komunálna Poisťovňa

(All amount are in thousands of Euros, unless stated otherwise)15.2 Long-term insurance contract – assumptions, changes in assumptions, andsensitivity analysisa) Process used to decide on assumptionsFor long-term insurance contracts, estimates are made in two stages. At inception of thecontract, the Company determines assumptions in relation to future mortality, voluntary terminations,investment returns, and administration expenses. These assumptions are used to calculatethe liabilities during the life of the contract. A margin for risk and uncertainty is added to theseassumptions.Subsequently, new estimates are developed at each reporting date to determine whether liabilitiesare adequate in the light of the latest current estimates. The initial assumptions are not alteredif the liabilities are considered adequate. If the liabilities are not adequate, the assumptionsare altered to reflect the latest current estimate, and no margin is added to the assumptions inthis event.The assumptions used for the insurance contracts disclosed in this note are as follows.• MortalityAn appropriate base table of standard mortality is chosen depending on the type of contract.An investigation into the Company’s experience over the most recent years is performed, andstatistical methods are used to adjust the rates reflected in the table to a best estimate of mortalityfor that year. For contracts insuring survivorship, an allowance is made for future mortality improvementsbased on trends identified in the data.• PersistencyAn investigation into the Company’s experience over the most recent years is performed, andstatistical methods are used to determine an appropriate persistency rate. Persistency rates varyby product type and policy duration. An allowance is then made for any trends in the data to arriveat a best estimate of future persistency rates that takes into account the effective contract holders’behaviour.• Renewal expense level and inflationThe current level of expenses is taken as an appropriate expense base. Inflation is not usedin calculation.• TaxIt has been assumed that current tax legislation and rates will continue unaltered.b) Sensitivity analysisThe following tables present the sensitivity of the value of insurance liabilities disclosed in thisnote to movements in the assumptions used in the estimation of insurance liabilities. For liabilitiesunder long-term insurance contracts with fixed and guaranteed terms, changes in assumptionswill not cause a change in the amount of the liability, unless the change is severe enough to triggera liability adequacy test adjustment.Ročná účtovná závierka a komentár I Company Accounts179