margin method

mandatory_coveragesmandatory_coverages
in CIA.IFRS17-2

why isn't margin method appropriate for reinsurance held?

Comments

  • Staff-T1Staff-T1

    A margin method would usually reflect an insurer's own view of risk since your own risk appetite would be reflected which is not relevant for reinsurance specifically because that risk is ceded to the reinsurer. The margin for reinsurance should reflect the amount of risk transferred not your own risk appetite

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