PAA Eligibility for Loss Occurring and Risk Attaching Contracts

frostyfrosty
in CIA.IFRS17-1

For Risk Attaching, it i mentioned that they are not automatically eligible for PAA if they are less than 1 year in term. Does that mean that they can only be PAA eligible if the results of PAA do not materially differ from GMA?

Secondly, what is the requirements to have Loss Occurring reinsurance contracts be eligible for PAA?

Comments

  • bennybees1bennybees1

    Yeah, does this mean all risks attaching contracts do not meet the coverage period <= 1 year requirement?

  • Staff-T1Staff-T1

    Yes, risk attaching contracts are mostly never automatically eligible (Unless they are < 6 months long but never seen an actual contract like this before)

    Loss occurring contracts with coverage period of one year would automatically be eligible for PAA. If more than one year, then you go about with the usual tests

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