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38. INSURANCE RISKS (CONT’D)
Claim liability sensitivity analysis (cont’d)
c. Change in Claims Handing Expenses (“CHE”)
Assumed the following expenses – 10% of IBNR and 9% the specific provisions. Changing this by 10% points gives
the following results:
2013
2012
Net
Net
RM’000
RM’000
RM’000
RM’000
High
Low
High
Low
+10%
–10%
+10%
–10%
Estimated claim liabilities
29,614
24,838
22,151
18,596
d. Change in PRAD %
Assumed a claim Provision of Risk Margin for Adverse Deviation (“PRAD”) of 15%. Changing this by 10% (to 16.5%
and 13.5% respectively) gives the following results:
2013
2012
Net
Net
RM’000
RM’000
RM’000
RM’000
High
Low
High
Low
+10%
–10%
+10%
–10%
Estimated claim liabilities
27,471
26,763
20,556
20,026
Premium/contribution liability sensitivity analysis
2013
2012
Net
Net
RM’000
RM’000
Estimated premium/contribution liabilities
15,836
12,993
a. Change in probability of default
Assumed one year probability of default of ranging from 1% to 5%, depending on the type of contract. Increasing and
decreasing this by 0.25 % points gives the following results:
2013
2012
Net
Net
High
Low
High
Low
+0.25%
–0.25%
+0.25%
–0.25%
points
points
points
points
Estimated premium/contribution liabilities
17,547
14,127
14,875
11,1
EXIM Bank Annual Report 2013
185