Page 210 - EXIM_AR2021

208 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

43. insUrance risks (cOnt’D.)

Claim liability sensitivity analysis
a. Change in claim costs
Assumed an average claim cost of RM550,000 (2020: RM550,000) net of non-reinsurance recoveries for the Comprehensive
Policy Shipments and adopted the Group’s and the Bank’s specific provisions for the other types of contracts where
applicable. Changing the average claims cost and specific provisions by 10% gives the following result:

2021 2020
Net Net
RM’000 RM’000 RM’000 RM’000
high Low high Low
+10% -10% +10% -10%

Estimated claim liabilities 43,543 42,558 52,069 51,334

b. Change in average number of claims

Assumed 10% (2020: 10%) of Comprehensive Policy Shipments policies as IBNR claims for Comprehensive Policy Shipments.
Changing this by 10% gives the following result:
2021 2020
Net Net
RM’000 RM’000 RM’000 RM’000
high Low high Low
+10% -10% +10% -10%

Estimated claim liabilities 43,470 42,630 51,918 51,485

c. Change in Claims handling Expenses (“ChE”)

Assumed the following expenses 5% of gross IBNR and 4% of the specific provisions. Changing this by 10% points gives
the following result:
2021 2020
Net Net
RM’000 RM’000 RM’000 RM’000
high Low high Low
+10% -10% +10% -10%

Estimated claim liabilities 43,250 42,850 51,940 51,463