Overview

In IFRS, insurance contracts are grouped as profitable and onerous to make it easier for insurers to evaluate their profit or loss. Fulfillment cash flows and contractual service margin are two parameters that are considered while calculating the liability of the remaining insurance coverage, and thereby the profit or loss.

Note:

IFRS 17 requires financial institutions to update the fulfillment cash flows at each reporting date by using current estimates that are consistent with relevant market information.