Insurance Knowledge Center
Explore our verified library of Insurance transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Written Premium — New Policy Issued
Recording the full annual premium when a new motor or property insurance policy is issued.
Unearned Premium Reserve (UPR) — Monthly
Deferring the unearned portion of annual premiums using the 1/365 pro-rata method.
Premium Instalment Payment Received
Collecting a quarterly instalment from a policyholder who pays in four equal parts.
Premium Refund — Mid-Term Policy Cancellation
Refunding the unearned premium to a customer who cancels their policy before expiry.
Reinsurance Premium Ceded to Reinsurer
Ceding a proportional share of risk and premium to a treaty reinsurer.
Unearned Premium — Ceded Reinsurance Asset
Recording the ceded unearned premium as an asset representing prepaid reinsurance.
Co-Insurance — Premium Split Between Insurers
Recording the lead insurer's share of a co-insurance arrangement on a large property risk.
IBNR Provision — Incurred But Not Reported Claims
Estimating and recording claims that have occurred but have not yet been reported to the insurer.
Claim Admitted and Paid
Settling an approved motor accident claim by payment to the insured.
Outstanding Claim Reserve — New Claim Reported
Setting up a case reserve when a new claim is received and assessed.
Reinsurance Recovery on Paid Claim
Recovering the reinsurer's share of a large property claim that exceeded the retention limit.
Salvage & Subrogation Recovery
Recovering value from salvaging a written-off vehicle or pursuing a third party who caused the loss.
Claims Reserve Release — Claim Closed Below Estimate
Releasing the excess reserve when a claim settles for less than originally estimated.
Catastrophe Reserve Provision
Establishing a catastrophe reserve for potential large-scale events (earthquake, flood).
Loss Adjustment Expense (LAE)
Recording the cost of claims investigation, legal fees, and loss adjusters.
IFRS 17 — Contractual Service Margin (CSM) at Inception
Recording the unearned profit (CSM) of a new insurance contract group at initial recognition.
IFRS 17 — CSM Release to P&L
Releasing a portion of the Contractual Service Margin as insurance services are rendered.
IFRS 17 — Risk Adjustment Change
Recording the change in the risk adjustment for non-financial risk each reporting period.
IFRS 17 — Premium Allocation Approach (PAA) Revenue
Recognizing insurance revenue under the simplified PAA for short-duration contracts.
IFRS 17 — Onerous Contract Loss Component
Recognizing an immediate loss when a group of contracts is onerous at inception.
IFRS 17 — Reinsurance Contract Held (CSM Asset)
Recording the CSM for a reinsurance contract held by the cedant.
IFRS 17 — Discount Rate Change on Best Estimate Liability
Recording the effect of a change in discount rates on the present value of future cash flows.
Reinsurance Premium Paid to Treaty Reinsurer
Remitting the quarterly reinsurance premium to the treaty reinsurer.
Reinsurance Ceding Commission Income
Earning a ceding commission from the reinsurer for the quality of the portfolio ceded.
Reinsurance Recoverable on Paid Claims
Recording the amount due from the reinsurer after settling a large claim.
Funds Held by Reinsurer
Recording the deposit withheld from the reinsurer as security.
Excess of Loss (XL) Reinsurance Premium
Paying the annual premium for a non-proportional XL treaty that covers catastrophic losses.
Quota Share Treaty — Proportional Risk Transfer
Setting up entries for a 40% quota share treaty where 40% of all premiums and claims are ceded.
Investment Portfolio — Bond Coupon Income
Accruing semi-annual coupon interest on the insurer's bond portfolio.
Investment Portfolio — Equity Dividend Income
Receiving dividends from equities held in the insurer's investment portfolio.
AFS / FVOCI Portfolio — Unrealized Fair Value Gain
Revaluing the insurer's bond portfolio upward at quarter-end.
Investment Property Fair Value Gain
Revaluing a commercial building held by the insurer as an investment asset.
Investment Impairment — Equity Security
Recording an impairment loss on an equity investment that has permanently declined in value.
Policy Loan Issued to Policyholder
Lending a policyholder up to 80% of their life insurance policy's cash surrender value.
Deferred Acquisition Cost (DAC) — Initial Recognition
Deferring upfront agent commissions paid to acquire new insurance policies.
Deferred Acquisition Cost (DAC) — Monthly Amortization
Releasing one month of the deferred acquisition cost to the income statement.
Agent / Broker Commission Expense
Recording commissions paid to insurance agents and brokers for new and renewal business.
Underwriting Expense (Salaries & Overhead)
Recording the monthly cost of the underwriting and risk assessment department.
Policy Administration System Annual Subscription
Paying the annual fee for the core insurance policy administration and billing platform.
Motor Third-Party Liability (TPL) Premium Written
Recording the premium for a compulsory third-party liability motor policy.
Motor Comprehensive Premium Written
Recording the annual premium for a comprehensive motor policy covering own damage and TPL.
Motor Fleet Policy — Group Premium
Recording a single fleet premium for a company insuring 50 vehicles on one policy.
Motor Own Damage — Total Loss Claim Paid
Settling a total loss motor claim where the vehicle is written off.
Motor Own Damage — Partial Repair Claim
Paying a garage directly for repairing a damaged vehicle under a comprehensive policy.
Third-Party Bodily Injury Reserve Setup
Setting a large reserve for a serious TPL bodily injury claim with potential long-term liability.
Third-Party Property Damage — Claim Paid
Paying a third party directly for vehicle or property damage caused by the insured.
Motor Policy Excess Collected from Insured
Collecting the policy excess (deductible) from the insured before releasing the claim payment.
No-Claim Bonus (NCB) Provision
Accruing the liability for premium discounts that will be applied at renewal for claim-free policyholders.
Motor Salvage Vehicle Sold
Recording proceeds from selling a total-loss vehicle that became the insurer's property.
Motor Subrogation Recovery — Third-Party at Fault
Recovering a paid claim from a third party who was legally responsible for the accident.
Green Card / International Motor Extension Premium
Charging additional premium for extending motor cover internationally.
Commercial Property Premium Written
Underwriting an annual fire and perils policy on a commercial warehouse.
Residential Homeowners Policy Premium
Writing a homeowners policy for a residential property including building and contents.
Property Fire Claim — Building Damage Reserve
Setting up a reserve for a major fire loss at a commercial property.
Business Interruption Claim — Loss of Profit
Paying a business interruption claim for lost profits following a fire at the insured's premises.
Property Risk Survey Fee
Paying an independent surveyor to inspect and assess a high-value property risk.
Property Co-Insurance Penalty — Underinsurance
Applying the average clause when the insured's sum insured is below the actual property value.
Property Reinstatement Value — Inflation Uplift
Adjusting the sum insured and premium upward mid-term for construction cost inflation.
Group Medical Policy Premium Written
Underwriting an annual group medical scheme for a company covering 200 employees.
Individual Health Insurance Premium Written
Writing an individual health policy for a self-employed customer.
Medical Claim — Hospital Direct Billing
Recording a hospital invoice under a direct billing arrangement when an insured is admitted.
Medical Claim — Reimbursement to Insured
Reimbursing an insured who paid out-of-pocket for treatment outside the network.
Medical Pre-Authorization Liability Accrual
Accruing a liability for approved hospital admissions not yet invoiced.
Medical Claims Inflation Reserve Top-Up
Increasing reserves to account for rising medical treatment costs mid-year.
Medical Co-Pay and Deductible Collected
Collecting the insured's co-payment share directly from the hospital network.
Third-Party Administrator (TPA) Fee Expense
Paying a TPA for managing the medical network, pre-authorizations, and claims processing.
Network Hospital Settlement Payment
Settling the monthly batch invoice from a network hospital for all direct billing claims.
Life Insurance — Term Policy Premium Written
Writing an annual term life policy providing a death benefit with no cash value.
Life Insurance — Whole Life / Endowment Premium
Recording the annual premium for a 20-year endowment policy with savings and protection components.
Takaful Contribution Received — Participants Fund
Recording a takaful contribution paid by a participant into the Participants' Risk Fund.
Takaful Wakala Fee Income to Operator
Recording the operator's management fee (wakala fee) charged to the Participants' Fund.
Takaful Mudarabah — Operator's Profit Share
Recording the operator's share of investment profit earned on the Participants' Fund assets.
Takaful Actuarial Reserve — Life Policy Liability
Calculating and recording the actuarial reserve for long-term family takaful policies.
Life Policy Surrender Value Paid
Paying a policyholder who surrenders their whole life or endowment policy before maturity.
Death Benefit Claim Paid
Settling a life insurance claim following the death of the insured.
Life Policy Maturity Benefit Paid
Paying the maturity benefit on a 20-year endowment policy at its expiry date.
Policyholder Dividend — Participating Policy
Distributing a share of the insurer's surplus to participating policyholders.
Takaful Surplus Distribution to Participants
Distributing the annual underwriting surplus of the Participants' Fund back to eligible participants.
General Liability Premium Written
Underwriting a commercial general liability (CGL) policy for a manufacturing company.
Professional Indemnity (PI) Premium Written
Underwriting a professional indemnity policy for an accounting or law firm.
Directors & Officers (D&O) Premium Written
Underwriting a D&O policy for a publicly listed company's board members.
Marine Cargo Premium Written
Underwriting a marine cargo open cover policy for a trader's annual import shipments.
Marine Hull Premium Written
Underwriting a marine hull policy on a commercial vessel.
Construction All Risk (CAR) Premium Written
Underwriting a CAR policy for a major construction project in Jordan.
Workers Compensation Premium Written
Underwriting an employer's liability / workers compensation policy.
Cyber Insurance Premium Written
Underwriting a cyber liability policy covering data breach and ransomware for a fintech company.
Broker Commission Payable — Outward
Accruing the commission owed to the placing broker for new business written through the broker channel.
Premium Written — Broker Channel (Gross)
Recording a policy placed through an intermediary broker, with premium collected via the broker.
Mid-Term Endorsement — Additional Premium
Collecting additional premium when a policyholder increases their sum insured or adds a risk mid-term.
Mid-Term Endorsement — Return Premium
Refunding a premium reduction when a policyholder reduces their coverage mid-term.
Renewal Notice — Premium Accrual
Accruing the renewal premium for a policy that has reached its anniversary date but payment is not yet received.
Lapsed Policy — Unearned Premium Released
Releasing the remaining UPR when a policy lapses due to non-payment of premium.
Policy Reinstatement — Back Premium Collected
Reinstating a lapsed policy after the insured pays arrears of premium.
First Notification of Loss (FNOL) — Initial Reserve
Setting an initial reserve immediately when a new claim is reported by telephone or online.
Reserve Increase — Adverse Claims Development
Increasing a case reserve when new information indicates the claim will cost more than initially estimated.
Reserve Decrease — Favorable Claims Development
Reducing a case reserve when the claim settles for less than the reserve or evidence improves.
Ex-Gratia Payment — No Legal Liability
Making a goodwill payment to a claimant when there is no legal obligation under the policy.
Claim Reopened After Closure
Reopening and re-reserving a claim that was closed but the insured has submitted additional costs.
Litigation Reserve — Disputed Claim
Setting a reserve for a claim where the insured has initiated legal proceedings against the insurer.
Large Loss Notification to Reinsurer
Recording the notified share of a large loss to be recovered from reinsurers.
Claim Fraud Identified — Reserve Released
Releasing the full reserve when a claim is confirmed as fraudulent and will not be paid.
Unexpired Risk Reserve (URR) — Additional Reserve
Setting an additional reserve when the UPR is insufficient to cover expected future claims.
Discounted Claims Reserve — Long-Tail Lines
Discounting long-tail claims reserves (workers comp, bodily injury) to present value.
IBNER — Incurred But Not Enough Reported
Increasing reserves for claims where reported information suggests the reserve is inadequate.
Run-Off Portfolio — Reserve Transfer
Transferring claims reserves for a discontinued line of business to a run-off reserve account.
Actuarial Assumption Change — Prior Year Development
Adjusting reserves due to a change in the mortality, discount rate, or inflation assumption.
Periodic Payment Order (PPO) Liability
Setting a liability for a court-ordered lifetime periodic payment to a seriously injured claimant.
Bond Investment Purchased at Premium
Buying a government bond at above par value (premium) for the investment portfolio.
Bond Premium Amortization — Monthly
Amortizing the premium paid on a bond purchase, reducing interest income each month.
Equity Investment Purchase
Buying listed equities for the insurer's investment portfolio.
Equity Sold — Realized Gain
Selling shares from the investment portfolio at above their carrying value.
Equity Sold — Realized Loss
Selling shares below their carrying value, recognizing a realized loss.
Investment in Associate — Equity Method Pickup
Recording the insurer's share of profit from a strategic investment in an associate company.
Investment Property — Monthly Rental Income
Earning monthly rental income from commercial properties held as investments.
Short-Term Deposit — Interest Accrual
Accruing interest earned on short-term bank deposits held for liquidity management.
External Investment Management Fee Paid
Paying the quarterly fee to an external fund manager for managing the bond portfolio.
Investment Portfolio Rebalancing
Selling bonds and buying equities to restore the target asset allocation.
Facultative Reinsurance — Single Risk Certificate
Ceding a specific large commercial property risk on a facultative (case-by-case) basis.
Inward Reinsurance Accepted — Premium Income
Acting as a reinsurer and accepting cessions from other insurance companies.
Inward Reinsurance — Claim Paid to Cedant
Paying a claim to the original insurer (cedant) under an accepted reinsurance treaty.
Retrocession Premium Paid
A reinsurer further cedes its own accepted reinsurance risk to a retrocessionnaire.
Reinsurance Bad Debt — Reinsurer Default Provision
Provisioning for potential non-recovery from a reinsurer showing financial distress.
Commutation Agreement — Reinsurance Settlement
Settling all past and future claims under a reinsurance treaty for a single lump sum.
Underwriter & Actuary Staff Payroll
Recording monthly gross salaries for technical insurance staff.
Claims Handlers & Loss Adjusters Payroll
Recording monthly salaries for the claims department.
EOSB Monthly Provision — Insurance Staff (Jordan)
Accruing the end-of-service benefit for Jordanian insurance company staff.
SSC Employer Contribution — Insurance Staff (Jordan)
Recording the 14.25% employer SSC contribution for Jordanian insurance company employees.
Insurance Premium Tax (IPT) Collected
Collecting insurance premium tax from policyholders and remitting to the tax authority.
VAT on Insurance Ancillary Services
Charging VAT on non-insurance services provided by the insurer (policy admin fees, surveys).
Corporate Income Tax Provision
Accruing the annual income tax on the insurance company's taxable profit.
Regulatory Solvency Margin — Capital Top-Up
Issuing new shares to maintain the minimum solvency margin required by the insurance regulator.
Insurance Regulator Annual Filing Fee
Paying the annual license renewal and filing fee to the Jordan Insurance Commission.
External Actuarial Consultant Fee
Paying the annual actuarial valuation fee to an independent consulting actuary.
Office Rent & General Overhead
Monthly office rent, utilities, and general administrative expenses.
Core Insurance IT System Annual Subscription
Annual subscription for the policy administration, claims, and billing platform.
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