Unexpired Coverage for Insurance Contract Issued (p.33)
I'm revising the section now that I know a bit more about IFRS and I'm not sure what this concept represents. I thought at first that Unexpired Coverage was simply another way of saying the Liability for Remaining Coverage, bbut since LRC is actually an input in the formula of "Unexpired Coverage for Insurance Contract Issued", I'm not sure what this is
Comments
They are trying to reach a similar definition as the premium liabilities under IFRS4 to have more consistency with the capital requirements if what I recall is correct
Okok I see!
Is that the reason too why in this formula we add the unamortized acquisition cashflow?
In the LRC from the IFRS17 texts, we need to subtract these acquisition cashflow. So in the MCT text formula, it is added to kinda negate the fact that it was subtract in the LRC formula (to be consistent with IFRS4).
Yup that is how I interpreted it. I think someone from the industry told me this interesting fact~
Thank you, this explains a lot of thing I didn't understand when comparing the formulas! Why make it simple when we can make it complicated? That's no fun, right?
If it was too simple, we would be out of our jobs!
Lol.