Insurance accounting

Insurance accounting guides

• Insurance accounting: IFRS 17 in practice4 minute readInsurance accounting under IFRS 17 explained: grouping contracts, the three measurement models, the CSM, risk adjustment, onerous groups, reinsurance and KPIs.
• The IFRS 17 general measurement model4 minute readThe IFRS 17 general measurement model explained: fulfilment cash flows, discounting, the risk adjustment and CSM, insurance revenue and finance expense.
• The premium allocation approach3 minute readThe IFRS 17 premium allocation approach explained: eligibility, the liability for remaining coverage, acquisition cash flows, incurred claims and an example.
• The contractual service margin3 minute readThe contractual service margin under IFRS 17 explained: what the CSM is, how it is accreted, adjusted and released using coverage units, with a roll-forward.
• The risk adjustment for non-financial risk3 minute readThe IFRS 17 risk adjustment for non-financial risk explained: confidence level and cost of capital techniques, the confidence level disclosure and release.
• Onerous groups of insurance contracts3 minute readOnerous contracts under IFRS 17 explained: when a group is onerous, the loss component, systematic allocation, reversals, the PAA test, with a worked example.
• Reinsurance contracts held3 minute readReinsurance contracts held under IFRS 17 explained: separate measurement, the CSM as net cost or gain, the loss-recovery component, presentation, examples.
• The variable fee approach3 minute readThe IFRS 17 variable fee approach explained: which contracts qualify, the variable fee, how market movements adjust the CSM, risk mitigation, with an example.
• Insurance acquisition cash flows3 minute readHow IFRS 17 treats insurance acquisition cash flows: commissions in the fulfilment cash flows, the asset for expected renewals, recoverability, the PAA option.
• Insurers' investments under IFRS 93 minute readHow insurers classify investments under IFRS 9 alongside IFRS 17: FVOCI, FVTPL and amortised cost, the OCI option for liabilities and accounting mismatches.
• IFRS 17 disclosures3 minute readIFRS 17 disclosures explained: liability reconciliations, insurance revenue analysis, new business, CSM release, claims development tables, risk and judgements.
• Takaful under IFRS 173 minute readTakaful accounting explained: the participants' fund and the operator, wakala and mudaraba fees, surplus and qard hasan, IFRS 17 and AAOIFI FAS 43.
• Insurance KPIs and the combined ratio3 minute readThe combined ratio in insurance explained under IFRS 17: loss, expense and reinsurance ratios, discounting effects, attributable expenses, other insurer KPIs.

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About these guides

Each guide starts from an accounting issue insurance companies actually face and works through it with numbers from the industry. 13 of 13 planned guides are published; more are added with every batch.