Definition: Property income attributed to insurance policy holders (not covered by the EAA/EAF)
Property income attributed to insurance policy holders corresponds to total primary incomes received from the investment of insurance technical reserves and pension funds (cf. ESA 95, 4.68.). These technical reserves are treated as assets belonging to the insured. The ESA 95 provides for the calculation of entrepreneurial income to include, as resources, incomes received from the investment of insurance technical reserves. This income is attributed to the insured as "property income attributed to insurance policy holders". The latter is treated as being paid back to the insurance enterprises in the form of additional premiums, since, in practice, the income is retained by them (cf. ESA 95, 4.69.).
Property income attributed to insurance policy holders is excluded from the EAA/EAF. In fact, in order to be meaningful, a measure for the income of agricultural activity should:
· include all flows related to non-life insurance (value of the service, income attributed to insurance policy holders, net premiums and claims): in this case, the income measured appears after description of all transactions of redistribution (between insurance policy holders and insurance enterprises and between periods) linked to non-life insurance; or
· only take into account the value of the service (which is definitely acquired from the insurance enterprise) (cf. 2.48. (g)): in this case, the income measured appears before description of all these transactions of redistribution.
The EAA and EAF have opted for the second solution.
Eurostat, "Manual on the economic accounts for agriculture and forestry EAA/EA 97 (Rev. 1.1)", Luxembourg, 2000