CIA Disclosure Flashcards
Provide the 2 primary implications of IFRS4 for a PC insurer
1 - Classification of insurance contract
2 - Enhanced disclosure in FS
What are the disclosures ?
An insurer shall disclose information that
1 - Identifies and explains the amounts in its FS arising from insurance contracts
2 - Needed for users of the FS to evaluate the nature and extent of insurance risks
What is the insurer expected to disclose ?
Changes in assumptions that have a material effect on the policy liabilities from one valuation date to the next
Provide examples of disclosures
“Identifying and explaining the amount in its financial statement arising from insurance contracts”
1 - Process used to determine the assumptions that have the greatest effect on the recognized amounts
2 -Effect of change in assumptions, for each material changes
3 - Recognized assets, liabilities, income and expenses arising from insurance contract
4 - Accounting policies for insurance contracts
5 - Reconciliation of changes in insurance liabilities and Re assets
Provide examples of disclosures
“Enabling users of its financial statement to evaluate the natureand extentof risks arising from insurance contracts”
1 - Risk management objectives and policies
2 - Info about insurance risk (before and after Re) including
(a) Sensitivity to insurance risk
(b) Concentrations of insurance risk
(c) Actual claims compared to previous estimates, LDF
3 - Info about credit risk, liquidity risk and market risk
Describe the requirement regarding disclosure of concentrations of insurance risk
1 - Description of how management determines concentrations
2 - Description of the shared chracteristic that identifies each. May group by business segment, geo region, product, or any other characteristic relevant to its business operations
Identify considerations in determining concentration risk
1 - Diversification
2 - UW limits
3 - Re
