Policy reserve


Policy reserve is a sum of money that insurance companies are required to set aside in order to fulfill future insurance claims and benefits payment obligations, as determined by the Insurance Business Act.

Accumulation methods of policy reserve include Net Level Premium Method and Zillmer’s Method.

Lifenet has used the 5-Year Zillmer’s Method for the calculation of policy reserve for the first ten years since business commencement. Policy reserve for new business acquired from Fiscal 2018 are accumulated using the Net Level Premium Method.

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