IFRS 17 Education Material - Re-insurance Contracts Held

The IASB has published a pocket guide explaining the accounting under IFRS 17 Insurance Contracts for reinsurance contracts held, along with an example illustrating proportionate reinsurance coverage.

As well as summarising the requirements of IFRS 17 in relation to reinsurance contracts, the pocket also includes relevant discussions of the IFRS 17 Transition Resource Group. 

The example of proportionate reinsurance illustrates the requirements of IFRS 17 applied to a group of underlying insurance contracts and to a group of reinsurance contracts that provides proportionate coverage to that group of underlying insurance contracts.  The example demonstrates that:

• the measurement of a group of reinsurance contracts held is consistent with the measurement of any underlying insurance contracts; and
• the timing of cash flows do not directly affect the recognition of reinsurance income or expenses

Both the pocket Guide and the illustrative example are available for download from the IFRS 17 education material page of the IASN web site here.