NTUC Income AR 2018

Notes to the Financial Statements For the Financial Year Ended 31 December 2018 3. Critical accounting estimates and judgements (continued) Insurance contract provisions for General Insurance (continued) Gross liabilities The gross claims liability as at 31 December 2018 is $479 million (2017: $476 million) as compared to net claims liability of $437 million (2017: $445 million). The gross premium liability as at 31 December 2018 is $189 million (2017: $188 million) as compared to net premium liability of $188 million (2017: $188 million). 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 2018 $’000 Accident year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total End of accident year 244,656 212,240 212,084 219,707 220,631 217,330 224,563 245,677 259,533 272,379 1 year later 226,472 186,768 196,745 216,590 215,523 204,892 206,268 230,753 244,141 2 years later 222,855 177,787 190,208 204,478 197,808 172,741 180,470 214,483 3 years later 215,323 171,039 174,294 187,817 163,440 149,658 169,599 4 years later 212,516 163,020 165,455 158,111 149,365 139,066 5 years later and beyond 200,416 153,245 144,145 147,800 142,404 Estimate of gross cumulative claims 200,416 153,245 144,145 147,800 142,404 139,066 169,599 214,483 244,141 272,379 1,827,678 Cumulative claim payments 200,002 152,517 141,482 145,005 136,183 127,990 136,006 150,807 148,750 89,700 1,428,442 Estimate of gross claim liabilities 414 728 2,663 2,795 6,221 11,076 33,593 63,676 95,391 182,679 399,236 Claims handling expenses 22 39 144 151 336 598 1,815 3,439 5,153 9,867 21,564 Estimate of gross claim liability before recoveries 436 767 2,807 2,946 6,557 11,674 35,408 67,115 100,544 192,546 420,800 Estimate of gross claim liabilities for prior accident years 1,901 Recoveries and other adjustments 2,760 Provisions for adverse deviation 53,902 Gross claim liabilities 479,363 67 2018 ANNUAL REPORT