Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×

Online ordering will be unavailable from 17:00 GMT on Friday, April 25 until 17:00 GMT on Sunday, April 27 due to maintenance. We apologise for the inconvenience.

  1. Home
  2. Search

Refine search

Refine search

Access:
Content type:
Publication date:
Apply   From and To filters
Subject: Show more
Journals Show more
Publishers: Show more
Societies Show more
Series: Show more
Collections: Show more

Actions for selected content:

Select all | Deselect all
  • View selected items
  • Export citations
  • Download PDF (zip)
  • Save to Kindle
  • Save to Dropbox
  • Save to Google Drive

Save Search

You can save your searches here and later view and run them again in "My saved searches".

Please provide a title, maximum of 40 characters.
Cancel
×

1 results

  • Sufficient mathematical conditions for identical estimation of the liability for remaining coverage under the general measurement model and premium allocation approach

  • Timothy Lee, Antonie Jagga
  • Journal:
    British Actuarial Journal / Volume 29 / 2024
    Published online by Cambridge University Press:
    03 December 2024, e17
    • Article
      • You have access
      • Open access
    • PDF
    • HTML
    • Export citation

  • Paragraph 53(a) of the new insurance accounting standard IFRS 17 suggests there is a relationship between the liability for remaining coverage (“LFRC”) calculated under the general measurement model (“GMM”) and premium allocation approach (“PAA”), although it is not immediately obvious how the two are related or could result in a similar estimate for the LFRC. This paper explores the underlying relationship between the GMM and PAA through the equivalence principle and presents a set of sufficient mathematical conditions that result in an identical LFRC when calculated under the GMM and PAA. An illustrative example is included to demonstrate how the sufficient conditions can be applied in practice and the optimisation opportunities offered to actuaries and accountants when conducting PAA eligibility testing.