Page 214 - EXIM-Bank_Annual-Report-2022

212 eXIM BANK MALAYsIA ANNUAL REPORT 2022

Notes to the fiNaNcial statemeNts

45. INSURaNCE RISkS (cont’d.)
Claim liability sensitivity analysis

a. Change in claim costs
Assumed an average claim cost of RM600,000 (2021: 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:

2022 2021
Net Net
rM’000 rM’000 rM’000 rM’000
high Low high Low
+10% -10% +10% -10%
Estimated claim liabilities 38,713 37,940 43,543 42,558

b. Change in average number of claims

Assumed 8% (2021: 10%) of Comprehensive Policy Shipments policies as IBNR claims for Comprehensive Policy Shipments.
Changing this by 10% gives the following result:
2022 2021
Net Net
rM’000 rM’000 rM’000 rM’000
high Low high Low
+10% -10% +10% -10%
Estimated claim liabilities 38,702 37,963 43,470 42,630

c. Change in Claims Handing 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:

2022 2021
Net Net
rM’000 rM’000 rM’000 rM’000
high Low high Low
+10% -10% +10% -10%
Estimated claim liabilities 38,510 38,143 43,250 42,850