Definition: Nonlife insurance

Category: External debt - IMF

For nonlife insurance the following transactions result in external debt:

• Any prepayments of premiums by nonresidents are classified as external debt of the insurance company, under other debt liabilities.

• Reserves that are held against outstanding claims of nonresidents—that is, claims that have arisen because an event has occurred that results in a valid claim—are also external debt of the insurance company. Again, these reserves are included in other debt liabilities. http://ec.europa.eu/eurostat/ramon/statmanuals/files/external_debt_guide_2003_EN.pdf#page=227