Contracts within the scope of IFRS 17

Learning objectives

• List the three categories of contracts within the scope of the Standard (insurance contracts issued, reinsurance contracts held, and investment contracts with discretionary participation features issued by an entity that also issues insurance contracts).L1
• Identify, from the facts of a case, whether a contract falls within the scope of the Standard and in which category.L2

Normative references

• IFRS 17 §3The Standard applies to insurance contracts (including reinsurance contracts) the entity issues, reinsurance contracts it holds, and investment contracts with discretionary participation features it issues, provided it also issues insurance contracts.

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

3 questions

• Marelle SA issues investment contracts with discretionary participation features, but it does not issue insurance contracts; these investment contracts fall within IFRS 17.L1
• Alvéa SA issues insurance contracts. It has also entered into a treaty with a reinsurer that reimburses it for part of the claims of its portfolio. Under the scope of IFRS 17, how should this treaty be analysed from Alvéa's point of view?L2
• Opaline SA has issued an insurance contract that falls within the scope of IFRS 17. A covered claim has occurred and is not yet settled. How is the obligation to settle that claim measured?L2