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Disclosure of accounting policies for insurance contracts
- description of the contract classification (insurance contract vs financial instrument)
- description of the accounting policies used for premium, UEP, claims, discounting, etc
Disclosure of components of policy liabilities
- case outstanding claim provision for L&LAE
- provision for L&LAE IBNR including pure IBNR, development, discounting, PfAD
- salvage and subrogation
- provision for unearned premium
- premium deficiency
Disclosures around assumptions
- process used to determine assumptions that have the greatest effect
- quantified disclosure of assumptions
- effect of changes in assumptions used to measure assets and liabilities
- qualitative disclosures include identification, rationale, and effect of change + trend
Disclosure about contract risks
- provide qualitative information about the nature of the risks
- examples of risks include operational, cat, concentration, pricing, market, credit, etc.
- additional disclosure concerning insurance risk in particular is required using either a sensitivity analysis or qualitative information about sensitivity
- similarly, disclosure about concentration of insurance risk is required, including a discussion of how management determines concentrations
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