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cedant |
The
policyholder under a reinsurance contract.
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deposit component |
A contractual component that is
not accounted for as a derivative under IAS 39 and
would be within the scope of IAS 39 if it were a
separate instrument.
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direct insurance
contract |
An insurance
contract that is not a reinsurance contract.
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discretionary participation feature
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A contractual right to receive, as
a supplement to guaranteed benefits, additional
benefits:
(a) that are likely to be a
significant portion of the total contractual benefits;
(b) whose amount or timing is
contractually at the discretion of the issuer;
and
(c) that are contractually based
on:
(i) the performance of a specified
pool of contracts or a specified type of contract;
(ii) realised and/or unrealised
investment returns on a specified pool of assets
held by the issuer;
or
(iii) the profit or loss of the
company, fund or other entity that issues the contract.
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fair value |
The amount for which an asset
could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length
transaction.
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financial risk |
The risk of a possible future
change in one or more of a specified interest rate,
financial
instrument price, commodity price, foreign exchange
rate, index of prices or rates,
credit rating or credit index or other variable,
provided in the case of a non-financial
variable that the variable is not specific to a party to
the contract.
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guaranteed benefits |
Payments or other benefits to
which a particular policyholder or investor has
an
unconditional right that is not subject to the
contractual discretion of the issuer.
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guaranteed element |
An obligation
to pay guaranteed benefits, included in a
contract that contains a discretionary participation
feature.
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insurance asset |
An
insurer’s net contractual rights under an
insurance contract.
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insurance contract |
A contract under which one party (the
insurer) accepts significant insurance risk from another party (the policyholder) by agreeing
to compensate the policyholder if
a specified uncertain future event (the insured event)
adversely affects the policyholder.
(See Appendix B for guidance on this definition.)
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insurance liability |
An insurer’s net
contractual obligations under an insurance contract.
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insurance risk |
Risk, other
than financial risk, transferred from the holder
of a contract to the issuer.
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insured event |
An uncertain
future event that is covered by an insurance contract
and creates insurance risk. |
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insurer |
The party that has an obligation
under an insurance contract to compensate a
policyholder if an insured event occurs.
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liability
adequacy test
|
An assessment of whether the
carrying amount of an insurance liability needs
to be
increased (or the carrying amount of related deferred
acquisition costs or related
intangible assets decreased), based on a review of
future cash flows.
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policyholder |
A party that has a right to
compensation under an insurance contract if an
insured
event occurs.
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reinsurance assets |
A
cedant’s net contractual rights under a
reinsurance contract.
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reinsurance contract |
An insurance contract
issued by one insurer (the reinsurer) to
compensate another
insurer (the cedant) for losses on one or more
contracts issued by the cedant.
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reinsurer |
The party that has an obligation
under a reinsurance contract to compensate a
cedant if an insured event occurs.
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Source