2
Recognition and Derecognition of Insurance and Reinsurance Obligations
2.1
For the calculation of the best estimate and the risk margin of technical provisions, a firm must recognise an insurance or reinsurance obligation at the date that it becomes a party to the contract that gives rise to the obligation or the date the insurance or reinsurance cover begins, whichever date occurs earlier. A firm must only recognise the obligations within the boundary of the contract.
A firm must derecognise an insurance or reinsurance obligation only when it is extinguished, discharged, cancelled or expires.
- 31/12/2024