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14.283.        The insurance service ratio for other direct insurance and reinsurance, which is the ratio of service charges to gross premiums earned, is estimated from resident non-life insurance enterprises’ financial statements and is applied to both imports and exports. Operating and administrative expenses are regarded as costs for providing insurance services, and the service ratio is estimated by dividing aggregated operating and administrative expenses by corresponding premiums. That ratio is fixed for a year and is updated when new financial statements become available. The insurance service ratio for freight insurance is captured separately and obtained from resident insurance enterprises.  


 14.284.        Insurance services are calculated by multiplying the service ratio by monthly actual premiums earned.[2] Premium supplements are regarded as zero, since retained incomes for non-life insurance reserves are negligible. Claims are recorded when paid, under secondary income for normal claims and under capital transfer for high claims, when catastrophic events have occurred.