Liability for remaining coverage and for incurred claims

Learning objectives

• Distinguish the liability for remaining coverage from the liability for incurred claims.L1
• Classify amounts of a group in one or the other liability.L2

Normative references

• IFRS 17 §40The carrying amount of a group at the end of a period is the sum of the liability for remaining coverage and the liability for incurred claims.

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

2 questions

• How is the carrying amount of a group of insurance contracts made up at the end of a period?L1
• At the closing date, Harmonie SA reports for a group a liability for remaining coverage of 700 euros and a liability for incurred claims of 300 euros (case data). What is the carrying amount of the group?L2