compressed_Annual Report 2016-ilovepdf-compressed

REPORT OF THE
ACTUARIES TO THE
BOARD OF DIRECTORS OF
SINCEPHETELO MOTOR
VEHICLE ACCIDENTS FUND
for the year ended 31 March 2016
We hereby certify that:
we have undertaken an actuarial valuation of the
outstanding claims provision of the Sincephetelo
Motor Vehicle Accidents Fund as at 31 March
2016.
the valuation, on accepted actuarial principles,
reveals the total outstanding claims amount, which
allows for outstanding reported as well as incurred
but not reported claims.
Statement of Assets, Liabilities,
and Excess Assets
Mar-16
Mar-15
Assets
(Net of non-technical
liabilities) 743237 682 545
Claims liabilities (248 451) (255 086)
Suplus/(Deficit) 494 786 427 459
undertakings
liabilities, gross large
claims and their respective expected
reinsurance recoveries as well as indirect claims
handling expenses.
The liability is calculated on an inflated and discounted
basis, i.e. explicit allowance for future claims
inflation and anticipated investment returns was made.
The valuation results shown in this report were derived
on a best estimate basis, and include no deliberate bias
for either over-estimation or under-estimation. However,
the future experience of the Fund and hence the valuation
is subject to uncertainty. Deviation from the estimates
are normal and to be expected and (given the nature
of schemes such as the Motor Vehicle Accidents Fund)
are more likely to result in solvency deteriorations than
improvements.
The relatively small number of claims may cause a high
level of volatility in the experience of the Fund. This volatility
in turn causes an increase in the uncertainty of the result.
This report is prepared in the context of the governing legislation
as it stands as at the valuation date and as such
does not take into account any future legislative changes.
A detailed report has been submitted to the board of
directors.
Jaco van der Merwe,
BComm (Hons) FFA FASSA
Director
Published Reporting Valuation Methods
and Assumptions
The discounted value of the outstanding claims liability is
estimated to be E248.5 million (2015: E255.1 million). This
figure includes an amount for the non-undertakings and
Actuarial & Insurance Solutions
Deloitte & Touche
16 August 2016
26
ANNUAL REPORT 2017