My first Publication ocbc_ar17_fullreport_english | Page 239

39. RISK MANAGEMENT (continued)
39.5 INSURANCE-RELATED RISK MANAGEMENT (continued)
Insurance risk (continued)
Table 39.5(A): Concentration of life insurance risk, net of reinsurance
Life Assurance
Insurance liabilities ($ million)
2017 2016
(a) By class of business
Whole life
Endowment
Term
Accident and health
Annuity
Others
Total 35,136
23,172
431
1,751
535
1,205
62,230 30,880
18,322
419
1,588
547
1,156
52,912
(b) By country
Singapore
Malaysia
Others
Total 42,745
18,936
549
62,230 34,653
17,783
476
52,912
The sensitivity analysis below shows the impact of change in key parameters on the value of policy liabilities, and hence on the income
statements and shareholders’ equity.
Sensitivity analysis produced below are based on parameters set out as follows:
(a) Scenario 1 – Mortality and Major Illness
(b) Scenario 2 – Mortality and Major Illness
(c) Scenario 3 – Health and Disability
(d) Scenario 4 – Health and Disability
(e) Scenario 5 – Lapse and Surrender Rates
(f) Scenario 6 – Lapse and Surrender Rates
(g) Scenario 7 – Expenses
+ 25% for all future years
– 25% for all future years
+ 25% for all future years
– 25% for all future years
+ 25% for all future years
– 25% for all future years
+ 30% for all future years
Table 39.5(B1): Profit/(loss) after tax and shareholders’ equity sensitivity for the Singapore segment
Impact on 1-year’s profit/(loss) after tax and shareholders’ equity
$ million
2017
Gross impact
Reinsurance ceded
Net impact
2016
Gross impact
Reinsurance ceded
Net impact
Scenario 1
Scenario 2 Scenario 3
Scenario 4
Scenario 5
Scenario 6
Scenario 7
(90.9)
–
(90.9) 8.8
–
8.8 38.6
–
38.6 (82.6)
–
(82.6) 57.4
–
57.4 (68.7)
–
(68.7) (25.9)
–
(25.9)
(22.8)
–
(22.8) (51.4)
–
(51.4) 60.9
–
60.9 (88.0)
–
(88.0) 58.1
–
58.1 (72.1)
–
(72.1) (21.8)
–
(21.8)
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
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