Reinsurance Cover of Profitable and Onerous Gross

[dtrzesniak]

See example 58 (EY58G and EY58R).

The GRIC covers 2 GICS (1 Profitable and 1 Onerous) and thus should calculate the effect separately for each case (i.e. aggregate of underlying Profitable GICS and aggregate of underlying Onerous GICS). The logic seems to aggregate all technical margin regardless of the underlying profitability, leading to incorrect results.

For benchmarks, see Illustration 58 of EY's Applying IFRS 17: A closer look at the new Insurance Contracts Standard.

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