Dear All,
I have a scenario where, an insurance companies issues unit-linked products whereby if the contract matures, the policyholder gets 100% of the fund value however if the policyholder dies, the policy holder gets 1% death benefit free of charge.
Throughout the policy life, management fees of 2.5% is charged per annum.
When the policyholder gives the premium, the amounts invested is the asset of the Company. The customer choses where to invest the funds, however, the insurer can at its discretion decide not to go forward with the policyholder’s choice.
My question is:
1. Can we say there is transfer of significant insurance risk?
2. If yes, why? and how to account.
Thanks!
Significant insurance risk - 1% Death Benefit IFRS 17
Re: Significant insurance risk - 1% Death Benefit IFRS 17
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Re: Significant insurance risk - 1% Death Benefit IFRS 17
Hi Marek
It’s okay. Thanks for letting me know!
It’s okay. Thanks for letting me know!