The general model for reinsurance held

Learning objectives

• Explain that reinsurance contracts held are measured separately from the underlying contracts, with modifications specific to the cedant.L2
• Distinguish the treatment of the underlying contract from that of the reinsurance contract in a case.L3

Normative references

• IFRS 17 §60The requirements of the Standard apply to reinsurance contracts held, with the modifications set out in paras. 61 to 70A.
• IFRS 17 §61Reinsurance contracts held are aggregated into portfolios and groups in accordance with paras. 14 to 24, with the notion of onerous contracts replaced by that of contracts on which there is a net gain on initial recognition; a group may comprise a single contract.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• A reinsurance contract held by a cedant is measured together with the underlying insurance contracts it covers, as a single set of cash flows.L2