We can consider Sol ll here, but any significant differences with IFRS17 or IFRS4 would be helpful as well.
1. Could someone please explain the concept of cotract boundaries, from an insurer as well as a reinsurer point of view?
2. Can contract boundaries differ for an insurer and the same business being ceded to a reinsurer, say due to different termination / repricing rights of the assuming party?
3. For a reinsurer point of view, I am confused how the recapture rights affect the contract boundaries? My understanding is that the recapture itself doesn't define the contract boundary but rather a probabilty gets associated to the recapture when projecting cashflows. The main aspects the define a contract boundary are the termination and repricing rights of the party accepting the risk?
1. Could someone please explain the concept of cotract boundaries, from an insurer as well as a reinsurer point of view?
2. Can contract boundaries differ for an insurer and the same business being ceded to a reinsurer, say due to different termination / repricing rights of the assuming party?
3. For a reinsurer point of view, I am confused how the recapture rights affect the contract boundaries? My understanding is that the recapture itself doesn't define the contract boundary but rather a probabilty gets associated to the recapture when projecting cashflows. The main aspects the define a contract boundary are the termination and repricing rights of the party accepting the risk?