The Global Federation of Insurance Associations has suggested that the issue of including the capital income derived from the investment of an insurer’s own funds in the calculation of the value added of insurance corporations should be included in the 2008 SNA research agenda, based on the contention that all of the assets of an insurer serve the ultimate purpose of improving the risk-bearing capacity of an insurer — and thus the interests of policyholders — irrespective of whether they have been acquired through an insurer’s own funds or collected premiums and that therefore all capital income is part of the production process of insurance protection.

It may be useful to assess both the implications of this suggestion made by the Global Federation and how reconsideration of the role of income (or some part thereof) derived from investment of the insurer’s own funds in the measurement of service output would affect the recording of transactions and other flows in national accounts. This issue will be considered under the issue of the income concept in the SNA (issue 10).

For more information see paragraphs 36 and 37 of the conclusions of the 9th AEG meeting.

See issue 10 of the Research Agenda