Determination of Liabilities Rules

Set out in Chapter 5 of IPRU (INS). The liabilities, as calculated, are set against the assets as valued (Valuation of Assets Rules) for required minimum margin (RMM) purposes. Liabilities for general insurance business are calculated along the lines of general accounting principles and practices, but long-term business liabilities are subject to complex rules calculated by the appointed actuary guided by his professional body and the Government Actuary’s Department.

Development hazard

The loss development potential of a hazard. Risk surveyors are concerned not only with the likelihood of a loss (the inception hazard) but whether the development of a loss will be minimal or severe. Risk mapping correlates probability and severity.