CERTYNEX IFRS ACADEMY

What does the risk adjustment for non-financial risk represent in the measurement of a group of insurance contracts?

The profit that the entity expects from providing services throughout the coverage period of the group of contracts.

The effect of the time value of money on future cash flows, calculated at the discount rate used for the group of contracts.

A reserve covering the risk of changes in interest rates or prices on the financial markets.

The compensation required for bearing the uncertainty about the amount and timing of flows arising from non-financial risk.