Territory Stories

Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)

Details:

Title

Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)

Other title

Tabled paper 1556

Collection

Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT

Date

2015-11-19

Description

Deemed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C01622

Parent handle

https://hdl.handle.net/10070/273151

Citation address

https://hdl.handle.net/10070/799706

Page content

Northern Territory Motor Accidents (Compensation) Commission Notes to the Financial Statements - 30 June 2015Annual Report 2015 Page 71 Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 57 21. Net claims incurred continued TIO (Insurance & Banking) Discontinued Operations (see Note 36) 2015 2014 Current Year Prior Year Total Current Year Prior Year Total $000 $000 $000 $000 $000 $000 Direct business Gross claims incurred undiscounted 31,775 8,845 40,620 56,828 1,650 58,477 Discount movement (1,199) 6,430 5,231 (2,412) 5,227 2,816 Gross claims incurred discounted 30,576 15,275 45,851 54,416 6,877 61,293 Reinsurance and other recoveries - undiscounted (3,397) (10,377) (13,774) (8,142) (7,260) (15,401) Discount movement - 5,090 5,090 20 2,190 2,210 Reinsurance and other recoveries - discounted (3,396) (5,287) (8,684) (8,122) (5,070) (13,191) Net claims incurred 27,180 9,988 37,167 46,294 1,807 48,102 MAC Fund 2015 2014 Current Year Prior Year Total Current Year Prior Year Total $000 $000 $000 $000 $000 $000 Direct business Gross claims incurred undiscounted 117,419 149,273 266,691 71,824 111,120 182,944 Discount movement (54,659) (97,573) (152,232) (21,105) (52,904) (74,009) Gross claims incurred discounted 62,760 51,700 114,459 50,719 58,216 108,935 Reinsurance and other recoveries - undiscounted (22,411) (63,535) (85,946) (4,134) 10,644 6,510 Discount movement 9,815 41,885 51,700 1,756 (8,121) (6,365) Reinsurance and other recoveries - discounted (12,596) (21,650) (34,246) (2,378) 2,523 145 Net claims incurred 50,164 30,050 80,213 48,341 60,739 109,080 MACC 2015 2014 Current Year Prior Year Total Current Year Prior Year Total $000 $000 $000 $000 $000 $000 Direct business Gross claims incurred undiscounted 149,194 158,118 307,311 128,652 112,770 241,421 Discount movement (55,858) (91,143) (147,001) (23,517) (47,678) (71,193) Gross claims incurred discounted 93,336 66,975 160,310 105,135 65,092 170,228 Reinsurance and other recoveries - undiscounted (25,808) (73,912) (99,720) (12,276) 3,384 (8,891) Discount movement 9,816 46,975 56,790 1,776 (5,930) (4,155) Reinsurance and other recoveries - discounted (15,992) (26,937) (42,930) (10,500) (2,546) (13,046) Net claims incurred 77,344 40,038 117,380 94,635 62,546 157,182 Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 56 20. Unearned premium liability continued Information relating to comparatives and MACC: The prudential margin for MAC Fund has been determined with reference to that adopted for the outstanding claims estimate, increased by approximately 50% to reflect the higher level of uncertainty surrounding the estimates of claims costs related to claims which have not yet occurred compared to those which have already occurred. The prudential margin determined in the manner described only applies to claims cost and the claims handling expense component and has not been applied to the policy administration expense component. The prudential margin for TIO Insurance has been determined based on selected Coefficient of Variation (CoV) for each class of business. The prudential margin determined in the manner described above only applies to claims costs and the claims handling expense component and has not been applied to the policy administration expense component. The premium liabilities risk margin for Insurance incorporates diversification benefits separately, based on the same correlation assumptions as for outstanding claims. For both TIO Insurance and MAC Fund the prudential margin applied to the policy administration expense component of premium liabilities has been determined using a risk margin of 5%. This reflects a lower uncertainty level associated with these expenses because they are incurred over the remaining policy period, being the next 12 months. The risk margin adopted for both Insurance and MAC was determined to give a probability of adequacy of 75% which is consistent with the probability of adequacy adopted in the determination of outstanding claims liability. The risk margin adopted for MAC Fund has been determined excluding any diversification benefit and for Insurance including a component for diversification benefit. 21. Net claims incurred The following tables show the impact on current year results of over or under estimation of claims provisions relating to prior years. Current year claims relate to risks borne in the current reporting period whilst prior years claims relate to a reassessment of the risks borne in all previous reporting years.


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