under IFRS, what level of aggregation should be used for calculating FCFs

oxalisoxalis
edited April 2022 in CIA.IFRS17-DR

Hi,
in battle card 29, we have: any level of aggregation provided estimates of LIC can be allocated back to portfolios and groups,
why is this specific to LIC, we also have FCF component for LRC under the GAM approach, is the level of aggregation for FCF under LRC the same?

Thanks,

Comments

  • Staff-T1Staff-T1

    It's battle card 26 btw. I do not think this is applicable to the LRC because the LRC FCF needs to be calculated on a group of contracts basis. We need a CSM or LC under the GMM method for LRC where this is not needed for the LIC. CSM and LC are done on a group of contracts basis.

  • oxalisoxalis

    ok thank you, so the battle card is specifically asking for the aggregation level for LIC FCF then

  • Staff-T1Staff-T1

    yup that's what the battlecard says

  • oxalisoxalis

    Can we specify in the question that it's specific to LIC, it's unclear from reading the question:

  • Staff-T1Staff-T1

    So I was mistaken in my initial response - You can estimate LRC FCFs at any level of aggregation and allocate as you like too. It's just the CSM or LC that needs to be calculated on a group of contracts basis. In any case, the battlecard should say LRC and LIC. Thoughts @graham?

  • oxalisoxalis

    Thank you very much!!

  • grahamgraham

    I've edited the BattleCard answer to state LIC and/or LRC. Thx!

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