Actuarial Notes

IFRS 17 Pocket Guide on Reinsurance Contracts Held

By IFRS Foundation · 2018 · CP341-112-25

Study guide: Exam CP-341

A July 2018 IFRS Foundation pocket guide, in the Supporting IFRS Standards series, on how IFRS 17 Insurance Contracts applies to reinsurance contracts held. It is a reference tool that also includes insights on implementing IFRS 17 from the discussions of the Transition Resource Group for IFRS 17. Under IFRS 17 a reinsurance contract held is accounted for as a standalone contract, independent of the accounting for the underlying insurance contracts, and the guide sets out the requirements and then what they mean for reinsurance contracts held, topic by topic.

On the syllabus

1 Scope

  • Requirements
  • What is significant insurance risk?
  • Definitions
  • Reinsurance contracts held
  • TRG insights—separating components of a reinsurance contract held

2 Level of aggregation

  • Requirements
  • Reinsurance contracts held
    • A reinsurance contract held cannot be considered onerous applying IFRS 17.

3 Recognition

  • Requirements
  • Reinsurance contracts held

4 Measurement—estimates of future cash flows

  • Requirements
  • Reinsurance contracts held
  • TRG insights—boundary of reinsurance contracts held

5 Measurement—risk adjustment for non-financial risk

  • Requirements
  • Reinsurance contracts held
    • Insurer
    • Reinsurer

6 Measurement—contractual service margin

  • Requirements
  • Reinsurance contracts held
  • TRG insights—identifying coverage units for allocating the CSM

7 Premium allocation approach

  • Requirements
  • Reinsurance contracts held
  • Example—PAA eligibility (underlying contracts and reinsurance contracts held)

8 Variable fee approach

  • Requirements
  • Reinsurance contracts held

9 Presentation

  • Requirements
  • Reinsurance contracts held
  • Example—presentation of insurance service result

10 Disclosures

  • Requirements
  • Reinsurance contracts held

11 Resources available

Sources