The premium risk covers both risks of existing insurance and reinsurance business and risks of new business expected to be written over the next 12 months. As regards the existing business, the volume measure should be determined consistently with the assumptions applied to derive the best estimate, including assumptions on the contract boundaries. As regards new business, the volume measures does only capture premiums beyond the contract boundary of existing contracts which are not taken into account in the best estimate.
For the component Ps of the volume measure the contract boundaries are not relevant as all premiums earned during the following 12 month are included, irrespective whether they stem from existing or new contracts.
The component FP(existing,s) should take into account the expected future premiums earned after the following 12 months with regard to insurance and reinsurance obligations that are within the contract boundaries of the existing contracts.
The component FP(future,s) relates only to expected future premiums that belong to insurance and reinsurance obligations beyond the contract boundary of existing contracts.