Lapse Risk/Expense Risk

AndrewLAndrewL
in CIA.IFRS17

Hi,

Can you please confirm my understanding of the following?

  1. There is no lapse and expense risk from insurance contract issued.

  2. There might be lapse and expense risk from REinsurance contract issued/held

Comments

  • Staff-T1Staff-T1

    There would be lapse and expense risk for both. Why do you think there wouldn't be for insurance contracts issued?

  • AndrewLAndrewL

    The wiki also mention something in the same line as well. Is my understanding incorrect?

  • Staff-T1Staff-T1
    It says lapse and expense risks are not insurance risks. It doesn't say that lapse and expense risks do not exists for direct insurance contracts
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