IFRS 17: Insurance Contracts
IFRS 17 is not just a new accounting standard for insurers, it will
affect almost every stakeholder and functional area, and many systems
and processes.
Level of aggregation is one of the many critical decisions that Insurance companies have to take.
Level of aggregation
An entity shall identify portfolios of insurance contracts.
A portfolio comprises contracts subject to similar risks and managed
together.
IFRS 17.14
Then an entity shall divide a portfolio of insurance contracts a group of contracts that, at initial recognition:
- are onerous;
- have no significant possibility of becoming onerous subsequently;
- have significant possibility of becoming onerous subsequently.
Ilustration
