Non-life insurance
(1) Subject to sub-paragraph (2), a provision for claims outstanding shall be computed separately for each case on the basis of the costs still expected to arise.
(2) Notwithstanding sub-paragraph (1), statistical methods may be used if they result in an adequate provision for claims outstanding having regard to the nature of the risks.
(3) A provision for claims outstanding shall also allow for claims incurred but not reported by the balance sheet date, the amount of the allowance being determined having regard to past experience as to the number and magnitude of claims reported after previous balance sheet dates.
(4) All claims settlement costs shall be included in the calculation of the provision for claims outstanding, irrespective of their origin.
(5) Recoverable amounts arising out of subrogation or salvage shall be estimated on a prudent basis and either deducted from the provision for claims outstanding (in which case if the amounts are material they