Day 3 (Opening) - IFRS 17 Training

Key differences between reinsurance held and insurance under IFRS 17:

___ shall include allowance for the risk of non-performance (incl. effects of collateral and losses from disputes).

• Estimated cash flows

• Risk adjustment

• Onerous contract requirements

Investment Component for Reinsurance Contracts: Amount that a contract requires ___ to repay to ___ even if an insured event does not occur.

• Entity, cedant

• Cedant, entity

___ has the same component under GMM and PAA method

• LFRC

• LFIC

The PAA method is likely to be the preferred method for ___.

• General and Health Insurance Contracts

• Life and Health Insurance Contracts

Profit sharing is included in the ___ component of the PAA calculation.

• Premium received

• Insurance revenue

• Investment

The PAA uses premiums ____ as opposed to premiums ___.

• Received, written

• Written, received

___ need to be measured under VFA.

• Insurance contract with DPF

• Health insurance contract

• Life insurance contract

Under VFA measurement changes financial risk will be ___.

• Recognised in P&L or OCI immediately

• Released overtime

Under fee income approach, what cash flow should be considered?

• Total cash flow

• Entity's share

• Policyholder's share

IFRS 17 requires separation of the non-insurance components from the insurance contract if the component is ___ and account for then under relevant IFRS standards.

• Distinct

• Non-distinct