Document ID: chunk:federal_register_of_legislation:F2023C00194:body:0:p30
Version: federal_register_of_legislation:F2023C00194
Segment Type: other
Provision Reference: 
Character Range: 78672–81509

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) an insurer need not provide the maturity analyses required by paragraphs 39(a) and (b) of AASB 7 if it discloses information about the estimated timing of the net cash outflows resulting from recognised insurance liabilities instead.  This may take the form of an analysis, by estimated timing, of the amounts recognised in the statement of financial position; and
(ii) if an insurer uses an alternative method to manage sensitivity to market conditions, such as an embedded value analysis, it may use that sensitivity analysis to meet the requirement in paragraph 40(a) of AASB 7.  Such an insurer shall also provide the disclosures required by paragraph 41 of AASB 7; and
(d) information about exposures to market risk arising from embedded derivatives contained in a host insurance contract if the insurer is not required to, and does not, measure the embedded derivatives at fair value.
17.7.2 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 would normally 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.
17.7.3 The claims development disclosure required by paragraph 17.7.1(b)(iii) only applies to classes of business where claims are not typically resolved within one year.  The insurer, in disclosing claims development, ensures it is clear to the reader of the financial statements, which classes of business, or which segments of the business, are covered by the disclosures and which classes of business, or which segments of the business, are not covered by the disclosures.
17.7.4 IG Example 5 in the Guidance on Implementing IFRS 4 Insurance Contracts, provides one possible format to meet the claims development disclosure requirements of this Standard.  Such a format may be particularly appropriate for longer tail classes of business where the long tail nature of the claims is a significant aspect in the development of the claims, as this format illustrates the development of claims over a number of years.  If this format is adopted, disclosure by accident year, gross and net of reinsurance, of undiscounted claims would normally be most relevant to the users of financial statements.  The insurer explains the information presented.  This includes whether