XML 37 R22.htm IDEA: XBRL DOCUMENT v3.19.1
TECHNICAL RESERVES FOR INSURANCE CLAIMS AND PREMIUMS
 12 Months Ended
Dec. 31, 2018
Disclosure of insurance claim reserves and technical reserves [Abstract]  
Disclosure of insurance claim reserves and technical reserves [Text Block]
15
TECHNICAL RESERVES FOR INSURANCE CLAIMS AND PREMIUMS
 
a)
This item consists of the following:
 
 
 
2018
 
 
 
Technical
reserves for

claims
 
 
Technical
reserves for

premiums (*)
 
 
Total
 
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
 
 
 
 
 
 
 
 
 
Life insurance
 
 
732,868
 
 
 
6,329,512
 
 
 
7,062,380
 
General insurance
 
 
562,430
 
 
 
593,938
 
 
 
1,156,368
 
Health insurance
 
 
71,372
 
 
 
162,551
 
 
 
233,923
 
Total
 
 
1,366,670
 
 
 
7,086,001
 
 
 
8,452,671
 
 
 
 
2017
 
 
 
Technical
reserves for

claims
 
 
Technical
reserves for

premiums (*)
 
 
Total
 
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
 
 
 
 
 
 
 
 
 
Life insurance
 
 
626,871
 
 
 
5,599,777
 
 
 
6,226,648
 
General insurance
 
 
484,608
 
 
 
513,826
 
 
 
998,434
 
Health insurance
 
 
69,373
 
 
 
149,305
 
 
 
218,678
 
Total
 
 
1,180,852
 
 
 
6,262,908
 
 
 
7,443,760
 
  
 
(*)
At December 31, 2018, the life insurance technical reserves include the mathematical reserves of life annuities amounting to S/4,073.3 million (S/3,514.4 million at December 31, 2017).
 
Insurance claims reserves represent reported claims and an estimate for incurred but non reported claims (IBNR). Reported claims are adjusted on the basis of technical reports received from independent adjusters.
 
Insurance claims and technical reserves corresponding to the reinsurers and coinsurers are shown as ceded claims, which are presented in “Accounts receivable from reinsurers and coinsurers” of the consolidated statement of financial position, See Note 9(b).
 
At December 31, 2018, the reserves for direct claims include reserves for IBNR for life, general and health insurance for an amount of S/314.5 million, S/16.7 million y S/50.2 million, respectively (S/282.4 million, S/11.3 million and S/47.6 million, respectively, at December 31, 2017).
 
At December 31, 2018 and in previous years, the differences between the estimates for the incurred and non-reported claims and the settled and pending liquidation claims have not been significant. In the case of general risks and health, retrospective analysis indicates that the amounts accrued are adequate and Management believes that the estimated IBNR reserve is sufficient to cover any liability as of December 31, 2018 and 2017.
 
Technical reserves comprise reserves for future benefit obligation under its in-force life, annuities and accident insurance policies and the unearned premium reserves in respect of the portion of premiums written that is allocable to the unexpired portion of the related policy periods for general and health insurance products.
 
b)
Movement of insurance claims reserves (direct and assumed), occurred during the years
2018
and
2017
:
 
 
 
2018
 
 
 
Life
insurance
 
 
General
insurance
 
 
Health
insurance
 
 
Total
 
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
626,871
 
 
 
484,608
 
 
 
69,373
 
 
 
1,180,852
 
Claims, Note 25
 
 
737,982
 
 
 
562,440
 
 
 
307,182
 
 
 
1,607,604
 
Payments
 
 
(635,345
)
 
 
(505,069
)
 
 
(305,257
)
 
 
(1,445,671
)
Exchange difference
 
 
3,360
 
 
 
20,451
 
 
 
74
 
 
 
23,885
 
Ending balance
 
 
732,868
 
 
 
562,430
 
 
 
71,372
 
 
 
1,366,670
 
 
 
 
2017
 
 
 
Life
insurance
 
 
General
insurance
 
 
Health
insurance
 
 
Total
 
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
551,516
 
 
 
325,748
 
 
 
60,733
 
 
 
937,997
 
Claims, Note 25
 
 
646,026
 
 
 
661,108
 
 
 
294,557
 
 
 
1,601,691
 
Payments
 
 
(569,108
)
 
 
(491,108
)
 
 
(285,899
)
 
 
(1,346,115
)
Exchange difference
 
 
(1,563
)
 
 
(11,140
)
 
 
(18
)
 
 
(12,721
)
Ending balance
 
 
626,871
 
 
 
484,608
 
 
 
69,373
 
 
 
1,180,852
 
 
c)
Technical reserves occurred during the years
2018
and
2017
:
 
 
 
2018
 
 
 
Life
insurance
 
 
General
insurance
 
 
Health
insurance
 
 
Total
 
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
5,599,777
 
 
 
513,826
 
 
 
149,305
 
 
 
6,262,908
 
Time course expenses and others
 
 
(117,965
)
 
 
–
 
 
 
–
 
 
 
(117,965
)
Unearned premium and other technical reserves variation, net
 
 
1,901
 
 
 
64,302
 
 
 
13,146
 
 
 
79,349
 
Insurance subscriptions
 
 
724,458
 
 
 
–
 
 
 
–
 
 
 
724,458
 
Exchange difference and others
 
 
121,341
 
 
 
15,810
 
 
 
100
 
 
 
137,251
 
Ending balance
 
 
6,329,512
 
 
 
593,938
 
 
 
162,551
 
 
 
7,086,001
 
 
 
 
2017
 
 
 
Life
insurance
 
 
General
insurance
 
 
Health
insurance
 
 
Total
 
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
S/(000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
5,128,974
 
 
 
574,435
 
 
 
144,783
 
 
 
5,848,192
 
Time course expenses and others
 
 
77,855
 
 
 
–
 
 
 
–
 
 
 
77,855
 
Unearned premium and other technical reserves variation, net
 
 
127
 
 
 
(28,992
)
 
 
4,621
 
 
 
(24,244
)
Insurance subscriptions
 
 
491,519
 
 
 
–
 
 
 
–
 
 
 
491,519
 
Exchange difference and others
 
 
(98,698
)
 
 
(31,617
)
 
 
(99
)
 
 
(130,414
)
Ending balance
 
 
5,599,777
 
 
 
513,826
 
 
 
149,305
 
 
 
6,262,908
 
 
At December 31, 2018 and 2017 no additional reserves were needed as a result of the liability adequacy test. The main assumptions used to estimate of retirement, disability and survival annuities and individual life (including Investment link insurance contracts) reserves, as of those dates, are as follows:
 
 
 
At
December 31, 2018
 
At
December 31, 2017
Mortality
 
Mortality table
 
Technical rates
 
Mortality table
 
Technical rates
Annuities
 
SPP-S-2017 and SPP-I- 2017
 
Between
3.81
% -
7.99
% / Between
2.50
% -
5.25
%
 
SPP-S-2017 and SPP-I- 2017
 
Between
2.90
% -
7.93
% / Between
2.50
% -
5.25
%
Pension insurance – Temporary Regime / SCTR (*)
 
B-85 and MI-85
 
3.00% soles VAC
 
B-85 and MI-85
 
3.00% soles VAC
Pension insurance – Definitive Regime
 
B-85 and MI-85
 
2.96
% soles VAC /
4.40
% nominal dollars
 
B-85 and MI-85
 
3.31
% soles VAC /
4.66
% nominal dollars
Pension insurance – Definitive Regime / SCTR
 
B-85 adjusted and MI-85
 
Between
3.00
%,
2.96
% soles VAC /
4.40
% nominal dollars /
5.82
% soles adjusted /
4.40
% dollars adjusted
 
B-85 adjusted and MI-85
 
Between
3.00
%,
3.38
% soles VAC /
4.66
% nominal dollars /
6.35
% soles adjusted /
4.66
% dollars adjusted
Pension insurance – Temporary Regime /SCTR (Longevity)
 
SPP-S-2017- and SPP-I-2017
 
Between
3.7910
%,
3.915
% soles VAC
 
SPP-S-2017- and SPP-I-2017
 
Between
3.81
%,
3.88
% soles VAC
Individual life
 
CSO 80 adjusted
 
Between
4.00
% -
5.00
%
 
CSO 80 adjusted
 
Between
4.00
% -
5.00
%
 
 
(*)
Complementary Work Risk Insurance (SCTR the Spanish acronym).
  
The sensitivity of the estimates used by the Group to measure its insurance risks is represented primarily by the life insurance risks; the main variables as of December 31, 2018 and 2017, are the interest rates and the mortality tables used.
The Group has evaluated the changes in its most significant reserves related to life insurance contracts included in retirement, disability and survival annuities reserves of +/-
100
bps of the interest rates and of +/-
5
bps of the mortality factors, with the following results:
 
 
 
At
December 31, 2018
 
 
At
December 31, 2017
 
 
 
 
 
 
Variation of the reserve
 
 
 
 
 
Variation of the reserve
 
Variables
 
Reserve
 
 
Amount
 
 
Percentage
 
 
Reserve
 
 
Amount
 
 
Percentage
 
 
 
S/
(000)
 
 
S/
(000)
 
 
%
 
 
S/
(000)
 
 
S/
(000)
 
 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio in S/ - Base amount
 
 
3,163,166
 
 
 
–
 
 
 
–
 
 
 
2,682,536
 
 
 
–
 
 
 
–
 
Changes in interest rates: +
100
bps
 
 
2,869,164
 
 
 
(294,001
)
 
 
(9.29
)
 
 
2,428,338
 
 
 
(254,198
)
 
 
(9.48
)
Changes in interest rates: -
100
bps
 
 
3,520,992
 
 
 
357,827
 
 
 
11.31
 
 
 
2,993,483
 
 
 
310,948
 
 
 
11.59
 
Changes in Mortality tables to
105
%
 
 
3,141,047
 
 
 
(22,118
)
 
 
(0.70
)
 
 
2,660,474
 
 
 
(22,062
)
 
 
(0.82
)
Changes in Mortality tables to
95
%
 
 
3,186,369
 
 
 
23,203
 
 
 
0.73
 
 
 
2,705,711
 
 
 
23,176
 
 
 
0.86
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio in US$ - Base amount
 
 
518,160
 
 
 
–
 
 
 
–
 
 
 
519,317
 
 
 
–
 
 
 
–
 
Changes in interest rates: +
100
bps
 
 
473,054
 
 
 
(45,106
)
 
 
(8.70
)
 
 
473,067
 
 
 
(46,250
)
 
 
(8.91
)
Changes in interest rates: -
100
bps
 
 
571,943
 
 
 
53,783
 
 
 
10.38
 
 
 
574,664
 
 
 
55,347
 
 
 
10.66
 
Changes in Mortality tables to
105
%
 
 
512,875
 
 
 
(5,285
)
 
 
(1.02
)
 
 
514,091
 
 
 
(5,226
)
 
 
(1.01
)
Changes in Mortality tables to
95
%
 
 
523,707
 
 
 
5,547
 
 
 
1.07
 
 
 
524,801
 
 
 
5,484
 
 
 
1.06