Timing Risk under IFRS
One of the battle cards says timing risk is not part of IFSR, but then when looking at the general model, the FCF (fulfillment of cash flows is a present value of premium - losses - benefits - expenses) ]+ [ adjustment for timing and risk of these cash flows.
By taking the present value aren't we already considering the timing? Aren't we looking at the time value of cash flows, "currently"?
Comments
Could you let me know in which battle card you saw this mention of timing risk not being a part of IFRS?
Battle Card 6 **under **Odomirok 24-IFRS says:
Q:identify an element of 'insurance risk' present under GAAP but not under IFRS
A: under IFRS: timing risk is not necessarily part of insurance risk
Both GAAP and IFRS consider underwriting and timing risks. This statement was made in error, we will remove it from the wiki. Thank you for pointing it out.