Page 347 - Full Book_24.4.2021

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF BIMB HOLDINGS BERHAD In Retrospect

(INcORPORATED IN MALAySIA) |
The Will to Suceed
(cOMPANy NO. REGISTRATION NO: 199701008362 (423858-X))

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REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
Key audit matters (continued)
Key audit matters How our audit addressed the key audit matters Achieving a Leading Repute
Valuation of takaful contract liabilities (continued)

Provision for outstanding claims and unearned Provision for outstanding claims and unearned contribution – |
contribution – general takaful contract liabilities general takaful contract liabilities
The valuation of provision for outstanding claims involves • Evaluated the design and tested key controls over the reserving
a range of standard actuarial methodologies as allowed process, including controls over the completeness and accuracy
under the RBcT Framework and relies on a number of contribution data, and settlement of claims that support key Paving the Way for a Sustainable Future
of assumptions including past claims development reserving calculations and controls over the valuation of provision for
experiences, management’s judgement on external outstanding claims and provision for unearned contribution.
factors and regulatory changes, and internal factors • Tested the underlying data used in estimation of the general takaful
such as portfolio mix and claims handling process. contract liabilities to source documents.
The estimation of provision for outstanding claims is
sensitive to various factors and uncertainties. • Engaged our actuarial experts to assist us in reviewing and
assessing the methodologies, basis and key assumptions used in 341
The provision for unearned contribution is based on the the valuation of provision for outstanding claims and provision
higher of Unexpired Risk Reserves (“URR”) and Unearned for unearned contribution in accordance with the requirements
contribution Reserves (“UcR”) as required under the of the RBcT Framework and liability adequacy test under MFRS 4
RBcT Framework. The estimation of URR involves ‘Insurance contracts’.
significant judgement in identifying best estimate values
of future contractual cash flows in consideration of the • Reviewed and assessed the reasonableness of key actuarial
expected loss and expenses for policies in-force as at assumptions by referencing to the Group’s historical experiences, Adhering to the Best Governance Practices
year-end at the required risk margin for adverse deviation. current trends and our own industry knowledge.
• Our actuarial experts performed independent reprojections of
outstanding claims and reviewed the calculation of the unexpired risk
reserves (“URR”) for selected major classes of business, focusing on |
the largest and most uncertain outstanding claims and URR to ensure
that the assumptions and methodology used are appropriate.
• Assessed the appropriateness and adequacy of the Group’s disclosures
in relation to the general takaful contract liabilities in the financial Laying the Foundation for Financial Growth
statements, including the historical claims development and sensitivity
analysis of key assumptions used in the valuation of general takaful
contract liabilities.

• Specific to the current environment, we evaluated the Group’s
assessment of cOvID-19 on provision for outstanding claims and |
provision for unearned contribution, including key judgement used
when determining the provision for outstanding claims and URR.
Based on the procedures performed, we did not find any material
exceptions in the methodology and key assumptions used in the Additional Information & Disclosure Summary
valuation of family and general takaful contract liabilities.

There are no key audit matters to report for the company.

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24 th AGM Information