Note 11: Insurance Expenses
| Forecast | Actual | |||
|---|---|---|---|---|
|
Original Budget $m |
Estimated Actuals $m |
30 June 2009 $m |
30 June 2008 $m |
|
By entity |
||||
| 3,749 | 3,818 | Accident Compensation Corporation (ACC) | 3,762 | 3,423 |
| 39 | 81 | Earthquake Commission | 88 | 130 |
| 11 | 17 | Other | 32 | 10 |
| 3,799 | 3,916 | Total insurance expenses | 3,882 | 3,563 |
By type |
||||
| Claims expense | 8,710 | 5,257 | ||
| Outwards reinsurance premium expense | 38 | 36 | ||
| Movement in unexpired risk liability | (19) | 298 | ||
| Other underwriting expenses | 93 | 93 | ||
| Total claims and other expenses | 8,822 | 5,684 | ||
| less actuarial loss | (4,491) | (1,709) | ||
| less operating costs relating to claims | (449) | (412) | ||
| Total insurance expenses (excluding losses and operations) | 3,882 | 3,563 | ||
More detail on insurance liabilities is provided in note 25.
Claims expense is the sum of claims settled and claims management expenses relating to claims incurred plus the movement in the outstanding claims liability.
Total claims and other expenses are those related to claims that have occurred prior to reporting date. Within these expenses are expenses relating to actuarial gains/(losses) and operating costs (e.g. costs for processing claims and injury prevention promotion) which due to their nature are reported elsewhere in the statement of financial performance (eg. under gains/losses or personnel expenses).
Insurance expenses represents underwriting expenses less those expenses reported elsewhere i.e. insurance expenses largely comprise direct settlement of claims and expected movements in the outstanding liability and unexpired risk liability.
