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HMRC internal manual

General Insurance Manual

Regulatory framework: the FSA return: accounting classes and risk groups

There are eight direct and facultative accounting classes and three treaty accounting classes, as set out below. The eight accounting classes set out in Appendix 9.16 in Volume II of IPRU(INS) correspond to business within the 18 general insurance business classes These are different from the groups for the purposes of granting authorisations for more than one type of insurance. GIM3100 lists the insurance classes and authorisation groups.

Accounting classes for direct insurance and facultative reinsurance  
1 Accident and health
2 Motor
3 Aviation
4 Marine
5 Transport
6 Property
7 Third party liability
8 Miscellaneous and pecuniary loss
Accounting classes for treaty reinsurance  
9 Non-proportional treaty
10 Proportional treaty
11 Marine, aviation and transport (MAT) treaty

Business within the treaty classes (9, 10, and 11) must be further allocated by the insurer into the eight standard business categories (1 to 8) or into its own bespoke business categories.

Annex 11.3 to Chapter 11 of Volume 1 of IPRU(INS) prescribes the categories of business for general insurance reporting purposes. Category 002 is total primary (direct) and facultative business, and 003 total treaty reinsurance accepted business. Category 001 is the combination of 002 and 003 and hence represents total business. Below that, individual lines are identified and mapped to the 18 insurance classes (GIM3100). For example, travel (category 113) maps to classes 1, 2, 8, 9, 17 and 18 and is

“Contracts of insurance (other than treaty reinsurance) against a combination of risks of loss to the persons insured attributable to their travelling, or to their making travel arrangements, and which fall within classes 1, 2, 8, 9, 17 or 18 and do not fall within category 160 (Household and domestic all risks).”