Group Medical Policy Premium Written
Underwriting an annual group medical scheme for a company covering 200 employees.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Premium Receivable (Group Medical) | Asset (+) | 120,000.00 | - |
| Written Premium — Group Medical | Revenue (+) | - | 120,000.00 |
💡 Accountant's Note
Group medical is the fastest-growing insurance line in Jordan and the GCC. Premiums are set annually based on the group's prior claims experience, demographics, and market trends. High claims ratios in medical make reserving and pricing critical.
Practitioner & Systems Framework
💻 ERP Architecture
Group medical policies are set up in the policy admin system with a member schedule listing all covered employees (and dependants if included). The premium is rated based on the group's prior claims experience (loss ratio, utilisation data), demographics (age/gender profile), and benefit structure (network tier, deductible, co-pay, annual limit). Member additions and deletions generate mid-term endorsements with pro-rata adjustments. The TPA system (if applicable) is integrated with the claims system for real-time utilisation tracking.
⚠️ Audit Flags
Auditors test the completeness of the member schedule — the premium should match the enrolled member count. Verify that the loss ratio used for renewal pricing reflects the actual claims experience, and that premium adjustments at renewal are properly documented. Group medical loss ratios in Jordan frequently exceed 80-90%; auditors assess whether the UPR is adequate to cover expected future claims and whether the policy group is onerous under IFRS 17.
📄 Required Documentation
Member schedule (all insured names, dates of birth, relationship to employee), claims experience report for the prior period, loss ratio calculation, renewal premium computation, and group policy schedule.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.