We welcome the model proposed in the ED because it offers improvements to the accounting for insurance contracts under existing IFRS practices. In particular, we support the ED’s proposals regarding the following core principles:

• the introduction of a consistent measurement basis for insurance contracts as defined (this basis presents insurance contracts as a bundle of rights and obligations)
• the use of a current measurement model focused on the insurer’s fulfilment of its obligations under a portfolio of insurance contracts (a portfolio current fulfilment value)
• the transparency of the measurement model using explicit “building blocks” which is also reflected in a set of presentation requirements to display the “building blocks” in the statement of comprehensive income.

However, the ED includes a number of proposals that appear to move away from these core principles and we recommend that the Board considers alternative solutions to address these areas to ensure consistency with the ED’s core principles.