Document ID: chunk:federal_register_of_legislation:F2023C00194:body:0:p27
Version: federal_register_of_legislation:F2023C00194
Segment Type: other
Provision Reference: 
Character Range: 70170–73203

underwriting performance, including the extent to which underwriting activities rely on investment income for the payment of claims.
17.1.2 Based on the total movement in net claims incurred, it may appear that there has not been a material reassessment of risks borne in previous periods, however, there may be material movements at a business segment level, that mitigate each other.  For example, the insurer may have seen a material deterioration in its motor portfolio, which has been mitigated by material savings in the professional indemnity portfolio, such that when both portfolios are aggregated there appears to have been little change in the reporting period.  In such circumstances, the insurer provides an explanation of the reassessments that took place in the net claims incurred for previous periods during the reporting period at the business segment level.

Statement of Financial Position
17.2 The financial statements shall disclose in relation to the outstanding claims liability:
(a) the central estimate of the expected present value of future payments for claims incurred;
(b) the component related to the risk margin;
(c) the percentage risk margin adopted in determining the outstanding claims liability (determined from (a) and (b) above);
(d) the probability of adequacy intended to be achieved through adoption of the risk margin; and
(e) the process used to determine the risk margin, including the way in which diversification of risks has been allowed for.
17.3 An insurer shall disclose the process used to determine which assets back general insurance liabilities and which assets back financial liabilities arising under non-insurance contracts.

Non-insurance Contracts
17.4 Where a general insurer has issued a non-insurance contract or holds a non-insurance contract as a cedant, and that non-insurance contract has a material financial impact on the statement of comprehensive income, statement of financial position or cash flows, the general insurer shall disclose:
(a) the nature of the non-insurance contract;
(b) the recognised assets, liabilities, income, expense and cash flows arising from the non-insurance contract; and
(c) information that helps users to understand the amount, timing and uncertainty of future cash flows from the non-insurance contract.
17.4.1 In applying paragraph 17.4 a non-insurance contract shall be considered together with any related contracts or side letters, when determining the need for disclosure, and in making the disclosures required.
17.5 [Deleted by the AASB]
17.5.1 [Deleted by the AASB]

Insurance Contracts – Explanation of Recognised Amounts
17.6 An insurer shall disclose information that identifies and explains the amounts in its financial statements arising from insurance contracts.
17.6.1 To comply with paragraph 17.6, an insurer shall disclose:
(a) its accounting policies for insurance contracts and related assets, liabilities, income and expense;
(b) the recognised assets, liabilities, income, expense and cash flows arising from