Insurance technical reserves (F.6)

5.98 Definition:

The category insurance technical reserves (F.6) consists of all transactions in insurance technical reserves (AF.6) that is the technical provisions of insurance corporations and (autonomous and non-autonomous) pension funds against policy holders or beneficiaries as laid down in Council Directive 91/674/EEC of 19 December 1991 on the annual accounts and consolidated accounts of insurance undertakings .

5.99 Category AF.6 covers:

  1. net equity of households in life insurance reserves;
  2. net equity of households in pension funds reserves;
  3. prepayments of insurance premiums;
  4. reserves for outstanding claims.

5.100 Insurance technical reserves are financial assets:

  1. for policy holders - in respect of net equity of households in life insurance reserves and in pension funds reserves, and prepayments of insurance premiums;
  2. for beneficiaries - in respect of reserves for outstanding claims.

5.101 Insurance technical reserves are liabilities:

  1. of life or non-life insurance corporations and autonomous pension funds included in the sub-sector insurance corporations and pension funds (S.125);
  2. of non-autonomous pension funds included in the sectors of the institutional units that set them up.

Provisions or similar funds constituted by employers to provide employees with pensions (non-autonomous pension funds) are only included in category AF.6 if they are calculated according to actuarial criteria similar to those used by insurance corporations and autonomous pension funds. Otherwise, these provisions are covered by the shares or other equity issued by the institutional unit that sets up the provisions.

5.102 Category AF.6 does not include provisions established by institutional units classified in the sub-sector social security funds (S.1314). In the system, these provisions are no liabilities of the social security funds sub-sector.

5.103Category F.6 is divided into two sub-categories of financial transactions:

  1. net equity of households in life insurance reserves and in pension funds reserves (F.61);
  2. prepayments of insurance premiums and reserves for outstanding claims (F.62).