Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p36
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 93147–96959

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                                                 The risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price, currency 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.
fulfilment cash flows                                          An explicit, unbiased and probability-weighted estimate (ie expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts, including a risk adjustment for non-financial risk.
group of insurance contracts                                   A set of insurance contracts resulting from the division of a portfolio of insurance contracts into, at a minimum, contracts issued within a period of no longer than one year and that, at initial recognition:
                                                               (a) are onerous, if any;
                                                               (b) have no significant possibility of becoming onerous subsequently, if any; or
                                                               (c) do not fall into either (a) or (b), if any.
insurance acquisition cash flows                               Cash flows arising from the costs of selling, underwriting and starting a group of insurance contracts (issued or expected to be issued) that are directly attributable to the portfolio of insurance contracts to which the group belongs. Such cash flows include cash flows that are not directly attributable to individual contracts or groups of insurance contracts within the portfolio.
insurance contract                                             A contract under which one party (the issuer) 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.
insurance contract services                                    The following services that an entity provides to a policyholder of an insurance contract:
                                                               (a) coverage for an insured event (insurance coverage);
                                                               (b) for insurance contracts without direct participation features, the generation of an investment return for the policyholder, if applicable (investment-return service); and
                                                               (c) for insurance contracts with direct participation features, the management of underlying items on behalf of the policyholder (investment-related service).
insurance contract with direct participation features          An insurance contract for which, at inception:
                                                               (a) the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;
                                                               (b) the entity expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items; and
                                                               (c) the entity expects a substantial proportion of any change in the amounts