PAA vs GMA when entering new market
in CIA.IFRS17
Question is relating to sample 14 from IFRS17 sample questions provided by CAS.
Specific question is to use PAA or GMA for: A property and casualty insurance company enters a new market and issues its first commercial automobile policies
The answer says to use GMA, as PAA and GMA would lead to very different results as this is a new market for the insurer. Despite this, would the company be eligible to use PAA anyways if the policy term is less than 1 year? I.e. shouldn't it be irrelevant of the results of PAA vs GMA as long as the 1 year policy term is satisfied?
Comments
Same question!
Yes, if the policy term is less than one year sure you can use the PAA