Life Insurance Accounting Models
The purpose of this session was for the Board to get an overview of the various accounting approaches available to the Board without going into the detail of precise measurement attributes.
The Board discussed the potential difficulties involved in the measurement of the margin recognised as the insurer provides service and is released from risk under the contract. This is coupled by the fact that additional risks may arise during the period resulting in a requirement to reassess at each balance sheet date, the full extent of risk within existing contracts, in addition to the assessment of risk release from the date of inception or previous assessment.
After discussing other aspects of the staff's presentation, the Board decided that the staff should concentrate all further work on the project on the two current-value approaches.