NTUC Income AR 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) Insurance Contract Provisions for General Insurance (continued) Development and movement of general insurance claim liabilities Below is the summary of the development of past years’ gross claims liabilities as at this year’s valuation: Claims development table 2017 ($'000) Accident year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total End of accident year 246,049 244,656 212,240 212,084 219,707 220,631 217,330 224,563 245,677 259,533 1 year later 240,920 226,472 186,768 196,745 216,590 215,523 204,892 206,268 230,753 2 years later 235,024 222,855 177,787 190,208 204,478 197,808 172,741 180,470 3 years later 233,214 215,323 171,039 174,294 187,817 163,440 149,658 4 years later 228,141 212,516 163,020 165,455 158,111 149,365 5 years later and beyond 218,645 200,636 154,117 145,617 149,781 Estimate of gross cumulative claims 218,645 200,636 154,117 145,617 149,781 149,365 149,658 180,470 230,753 259,533 1,838,575 Cumulative claim payments 218,327 199,321 151,953 140,825 142,223 132,069 122,521 126,700 133,330 80,848 1,448,117 Estimate of gross claim liabilities 318 1,315 2,164 4,792 7,558 17,296 27,137 53,770 97,423 178,685 390,458 Claims handling expenses 18 76 125 276 435 995 1,561 3,094 5,606 10,281 22,467 Estimate of gross claim liability before recoveries 336 1,391 2,289 5,068 7,993 18,291 28,698 56,864 103,029 188,966 412,925 Estimate of gross claim liabilities for prior accident years 1,463 Recoveries and other adjustments 8,811 Provisions for adverse deviation 53,296 Gross claim liabilities 476,495 Below is the summary of the development of past years’ net claims liabilities as at this year’s valuation: Claims development table 2017 ($'000) Accident year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total End of accident year 232,650 226,742 197,095 195,975 205,790 207,360 204,499 209,542 227,849 241,377 1 year later 223,280 210,311 172,582 184,283 203,562 202,798 191,188 191,300 214,611 2 years later 218,253 205,928 166,526 178,766 192,406 184,577 160,206 167,845 3 years later 215,500 201,684 160,751 164,004 175,255 151,580 139,189 4 years later 213,690 199,733 153,395 154,389 146,638 138,916 5 years later and beyond 202,779 186,077 142,934 135,050 139,304 Estimate of net cumulative claims 202,779 186,077 142,934 135,050 139,304 138,916 139,189 167,845 214,611 241,377 1,708,082 Cumulative net claim payments 202,483 184,854 140,921 130,594 132,274 122,830 113,950 117,837 124,003 75,193 1,344,939 Estimate of net claim liabilities 296 1,223 2,013 4,456 7,030 16,086 25,239 50,008 90,608 166,184 363,143 Claims handling expenses 18 76 125 276 435 995 1,561 3,094 5,606 10,281 22,467 Estimate of net claim liability before recoveries 314 1,299 2,138 4,732 7,465 17,081 26,800 53,102 96,214 176,465 385,610 Estimate of net claim liabilities for prior accident years 1,367 Recoveries and other adjustments 8,636 Provisions for adverse deviation 49,218 Net claim liabilities 444,831 ANNUAL REPORT 2017 NTUC INCOME INSURANCE CO-OPERATIVE LIMITED 66