The session was educational and no decisions were taken.

Insurance experts from two international public accounting firms made a presentation to the Board relating to the characteristics of renewals and their impact on accounting for insurance contracts. The Board considered a range of different types of contracts, and particularly considered the issue of whether the entity could control future premiums in certain situations.

The Board noted that such decisions would need to be made on a portfolio basis, based on the terms of the product, rather than in respect of each individual policy holder. The Board also noted that completing the insurance project would result in significant thought about certain elements of the financial statements, and the outcomes of that research and discussion would be very useful in considering the Framework for the Preparation and Presentation of Financial Statements.