Investor Presentaiton
30
IFRS 17 Awareness
Measurement Models
Definitions
إعادة
Saudi Re
There are three measurement models under IFRS
17:
1.
2.
3.
General model (GM): Default model for all
(re)insurance contracts
Premium allocation approach
(PAA):
optional for short term contract with little
variability.
Variable fee approach: to deal with business
where the payment to insured are linked to
the underling items, e.g. assets.
■ Risk adjustment: reflects the compensation
that Saudi Re requires for non-financial risks
that are present in the contracts sold,
■
☐
Discounting: adjusts the estimates of future
cash flows to reflect the time value of money
and the financial risks related to those cash
flows, to the extent that the financial risks are
not included in the estimates of cash flows.
Expected value of future cash flows: An
entity estimates future cash flows for insurance
contracts based on the expected value of the
full range of possible outcomes.
Contractual service margin: Represents the
unearned profit under the contract, i.e. the
amount the entity expects to be compensated
for providing insurance service.
Public
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