Investment categories based on type of business
Investment assets of an insurer have broadly been classified as follows for the purpose of regulating investments:
(a) Unit reserves of unit linked business – These constitute the reserves against the units of a unit linked insurance business which are dependent upon the investment pattern chosen by the Policyholders. Hence these investments are classified separately
(b) Pension and Annuity business – Pension and Annuity business are relatively long term in nature and guarantee annuity over a fairly long period of time and hence requires to be treated differently.
Group business other than unit linked and One year Renewal Group Term insurance also fall under this category.
(c) Life insurance business – this is the residual category which comprises of :
1. Shareholders’ funds representing solvency margin
2. Participating and Non-participating Policyholders funds
3. One year Renewable Group Term Insurance
4. Non-unit reserves of unit linked insurance business
For a Non-life insurer (including Health business), there is only one category of investible funds – which includes both shareholders funds and policyholders funds
Investment assets of an insurer have broadly been classified as follows for the purpose of regulating investments:
(a) Unit reserves of unit linked business – These constitute the reserves against the units of a unit linked insurance business which are dependent upon the investment pattern chosen by the Policyholders. Hence these investments are classified separately
(b) Pension and Annuity business – Pension and Annuity business are relatively long term in nature and guarantee annuity over a fairly long period of time and hence requires to be treated differently.
Group business other than unit linked and One year Renewal Group Term insurance also fall under this category.
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(c) Life insurance business – this is the residual category which comprises of :
1. Shareholders’ funds representing solvency margin
2. Participating and Non-participating Policyholders funds
3. One year Renewable Group Term Insurance
4. Non-unit reserves of unit linked insurance business
For a Non-life insurer (including Health business), there is only one category of investible funds – which includes both shareholders funds and policyholders funds
Insurance Law And Practice - ICSI
Investment categories based on type of business
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