IFRS 4 – Insurance Contracts

Scope IFRS 4 Insurance Contracts applies, with limited exceptions, to all insurance contracts (including reinsurance contracts) that an entity issues and to reinsurance contracts that it holds. IFRS 4 was issued in March 2004 and applies to annual periods beginning on or after 1 January 2005. Definition of insurance contract An insurance contract is a "contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to…

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IFRS Reserving – Non-Life

Introduction Insurance is about sharing risk. At the balance sheet of any insurance company the technical provisions is likely to be an important item. Both in terms of size and in terms of uncertainty. Increasing or decreasing technical provisions has a direct impact on the company’s result. Since setting reserves is about estimating future events there will always be uncertainty involved and the process will at some stage require the…

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