CIA Disclosure Flashcards

1
Q

Provide the 2 primary implications of IFRS4 for a PC insurer

A

1 - Classification of insurance contract

2 - Enhanced disclosure in FS

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2
Q

What are the disclosures ?

A

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

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3
Q

What is the insurer expected to disclose ?

A

Changes in assumptions that have a material effect on the policy liabilities from one valuation date to the next

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4
Q

Provide examples of disclosures

“Identifying and explaining the amount in its financial statement arising from insurance contracts”

A

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

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5
Q

Provide examples of disclosures

“Enabling users of its financial statement to evaluate the natureand extentof risks arising from insurance contracts”

A

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

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6
Q

Describe the requirement regarding disclosure of concentrations of insurance risk

A

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

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7
Q

Identify considerations in determining concentration risk

A

1 - Diversification
2 - UW limits
3 - Re

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