Whitepaper | Unpacking LRC and LIC Calculations for P&C Insurers

For P&C insurers, the new IFRS 17 insurance contracts accounting standard has created unique challenges. These range from defining IFRS 17 risk groups, to making a policy choice to use the Premium Allocation Approach (PAA), liability for remaining coverage (LRC), and liability for incurred claims (LIC) calculations under PAA. In this whitepaper, we cover the following topics:

• Overview of the measurement models under IFRS 17
• Further analysis of the LIC, including the roll-forward and the granularity of calculation required
• LRC calculations under the PAA, including subsequent measurement and the underlying issues
• The challenge in the treatment of premium experience compared to expected (known as the premium variance)
• Acquisition expenses and the implications from the change in the amendment

Read “Unpacking LRC and LIC Calculations for P&C Insurers” to learn more.