Document ID: chunk:federal_register_of_legislation:F2023C00194:body:0:p29
Version: federal_register_of_legislation:F2023C00194
Segment Type: other
Provision Reference: 
Character Range: 75947–78931

17.6.1(d) the insurer determines the level and extent of disclosure that is appropriate having regard to its circumstances and the qualitative characteristics of financial statements under the Framework for the Preparation and Presentation of Financial Statements (as identified in AASB 1048 Interpretation of Standards).

17.6.5 For an insurer that is involved in a large number of insurance classes, across different jurisdictions, disclosure by class of business is likely to be voluminous and may not be understandable to the user of the financial statements.  Furthermore, for such an insurer, disclosure for the entity as a whole is also likely to be at too high a level of aggregation to be relevant or comparable.  It is expected that for most insurers disclosure at the major business segment level would normally be most appropriate.  The insurer may believe that disclosure of a range of values would be relevant to the users of the financial statements.
17.6.6 Some of the assumptions that would normally have the greatest effect on the measurement of the recognised amounts described in paragraph 17.6.1(b), are discount rates, inflation rates, average weighted term to settlement from the claims reporting date, average claim frequency, average claim size and expense rates.  The insurer determines whether these assumptions shall be disclosed given the requirements of paragraphs 17.6 and 17.6.1.

Nature and Extent of Risks Arising from Insurance Contracts
17.7 An insurer shall disclose information that enables users of its financial statements to evaluate the nature and extent of risks arising from insurance contracts.
17.7.1 To comply with paragraph 17.7, an insurer shall disclose:
(a) its objectives, policies and processes for managing risks arising from insurance contracts and the methods used to manage those risks;
(b) information about insurance risk (both before and after risk mitigation by reinsurance), including information about:
(i) sensitivity to insurance risk (see paragraph 17.7.5);
(ii) concentrations of insurance risk, including a description of how management determines concentrations and a description of the shared characteristic that identifies each concentration (e.g. type of insured event, geographical area, or currency); and
(iii) actual claims compared with previous estimates (i.e. claims development).  The disclosure about claims development shall go back to the period when the earliest material claim arose for which there is still uncertainty about the amount and timing of the claims payments, but need not go back more than ten years.  An insurer need not disclose this information for claims for which uncertainty about the amount and timing of claims payments is typically resolved within one year;
(c) information about credit risk, liquidity risk and market risk that paragraphs 31-42 of AASB 7 Financial Instruments: Disclosures would require if the insurance contracts were within the scope of AASB 7.  However:
(i)