Questions on LRC Inputs - Gross Premium Cash Flow Type
(Doc ID 2891871.1)
Last updated on SEPTEMBER 20, 2022
Applies to:Oracle Insurance Accounting Analyzer - Version 8.0.6 and later
Information in this document applies to any platform.
The IAA PAA_YTD_DEFAULT calculation preferences for LRC calculation (under PAA), observed that Gross premium is being used as one of the cash flow types for calculating the below input variables:
1. PV Gross Premium At Inception.
2. Expected Gross Written Premium In Reporting Period.
3. Actual Gross Written Premium In Reporting Period.
The following queries relating to the above inputs:
1. How does the entity distinguish between Actual versus Expected Gross premium? As generally the entity just has one GWP figure.
2. How is Gross written premium relevant for LRC calculation?
3. IFRS 17 defines LRC under PAA as (Premium Recd – Acquisition Cost), so is the tool using premium received information as well for determining LRC? If yes, which cashflow type captures this information?
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