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Prepayment of premiums and reserves against outstanding claims

Australian System of National Accounts: Concepts, Sources and Methods
Reference period
2020-21 financial year

Definition

15.137    Prepayments of premiums and reserves against outstanding claims represents policy-holders’ net equity in, or claims on, the reserves of general insurance corporations. They equate to prepayments of premiums and reserves held to cover outstanding claims.

15.138    They consist of premiums paid but not yet earned (called unearned premiums) and claims due but not yet settled, including cases where the amount is in dispute or the event leading to the claim has not yet been reported (called claims outstanding).

Sources and methods – quarterly

15.139    The table below outlines the data sources and methods used in the estimation of quarterly prepayments of premiums and reserves against outstanding claims in current prices. Volume/real estimates are calculated for the national balance sheet.

15.12 Quarterly prepayment of premiums and reserves against outstanding claims
ItemComment
Prepayments of premiums and reserves against outstanding claims
 Prepayments of premiums and reserves against outstanding claims are constructed using unearned premiums and claims outstanding data from the following balance sheet data:
  • from returns submitted by private general insurers under the quarterly APRA Statement of Financial Position – General Insurance;
  • from the ABS Survey of Financial Information – Government and Other Entities for public insurers; and
  • from quarterly APRA private health insurance statistics publication