LRC(Excluding LC) at subsequent measurements

AndrewLAndrewL
edited August 2023 in CIA.IFRS17-LRC

  1. For the excel example 1, what would be the LRC at year 2, assuming no claims?
    My guess= 800(Opening Balance) + 0 (No premium received in year 2) - 0 (No acquisition) + 200 (amortization Acquisition) -600 (amortization Insurance Revenue)= 400

  2. If claims were incurred in the first year, how would that affect the LRC?

Comments

  • Staff-T1Staff-T1
    edited August 2023
    1. Just do LRC = UEP - DAC. So at the end of year 2 it would be 600 (UEP) - Remaining DAC(200) = 400
    2. Incurred claims does not affect the LRC, only the LIC
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