IFRS 17Chapter 7Lesson 1
Reinsurance held: separate measurement and loss recovery
Step 1 of 6Learning objectives
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A reinsurance contract held is measured and presented separately from the underlying contracts; since 2020, a treaty entered into no later than the recognition of onerous underlying contracts gives rise to a loss recovery at the same time as the loss.
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Learning objectives
- Explain that reinsurance contracts held are measured separately from the underlying contracts.
- Distinguish the treatments of the underlying contract and of the reinsurance contract in a case.
- Calculate the expected recovery of an underlying loss from the percentage of claims covered.