Procedures and Basic Statistics to be Used in Magnitude Control of Equalization Reserves in Finland

This report aims at describing the procedures and statistics prepared for use in calculation of the limits of the equalization reserves of Finnish insurance companies. The report is based on work done by a committee which the Federation of Finnish Insurance Companies set up in 1962. Its purpose was to collect and work up the necessary statistics and to develop computational methods to be used in practice for the computation of equalization reserves. In one respect the work was initiated by the Supervisory Service, which prepared new and more precise regulations concerning the determination of limits of the above reserves.