Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p35
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 90298–93459

about claims development with the aggregate carrying amount of the groups of insurance contracts, which the entity discloses applying paragraph 100(c).

Credit risk—other information
131 For credit risk that arises from contracts within the scope of AASB 17, an entity shall disclose:
(a) the amount that best represents its maximum exposure to credit risk at the end of the reporting period, separately for insurance contracts issued and reinsurance contracts held; and
(b) information about the credit quality of reinsurance contracts held that are assets.

Liquidity risk—other information
132 For liquidity risk arising from contracts within the scope of AASB 17, an entity shall disclose:
(a) a description of how it manages the liquidity risk.
(b) separate maturity analyses for portfolios of insurance contracts issued that are liabilities and portfolios of reinsurance contracts held that are liabilities that show, as a minimum, net cash flows of the portfolios for each of the first five years after the reporting date and in aggregate beyond the first five years. An entity is not required to include in these analyses liabilities for remaining coverage measured applying paragraphs 55–59 and paragraphs 69–70A. The analyses may take the form of:
(i) an analysis, by estimated timing, of the remaining contractual undiscounted net cash flows; or
(ii) an analysis, by estimated timing, of the estimates of the present value of the future cash flows.
(c) the amounts that are payable on demand, explaining the relationship between such amounts and the carrying amount of the related portfolios of contracts, if not disclosed applying (b) of this paragraph.

Commencement of the legislative instrument
Aus132.1 For legal purposes, this legislative instrument commences on 31 December 2022.

Appendix A
Defined terms
This appendix is an integral part of AASB 17 Insurance Contracts.

contractual service margin                                     A component of the carrying amount of the asset or liability for a group of insurance contracts representing the unearned profit the entity will recognise as it provides insurance contract services under the insurance contracts in the group.
coverage period                                                The period during which the entity provides insurance contract services. This period includes the insurance contract services that relate to all premiums within the boundary of the insurance contract.
experience adjustment                                          A difference between:
                                                               (a) for premium receipts (and any related cash flows such as insurance acquisition cash flows and insurance premium taxes) – the estimate at the beginning of the period of the amounts expected in the period and the actual cash flows in the period; or
                                                               (b) for insurance service expenses (excluding insurance acquisition expenses) – the estimate at the beginning of the period of the amounts expected to be incurred in the period and the actual amounts incurred in the period.
financial risk