The IFRS4 Definition goes like this: An insurance contract is a "contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder." I do not see any reference to a premium payment in the definition. Is this an omission or just deliberate? My ST2, CA1 Glossary notes define insurance contract in an almost similar fashion BUT includes .."in consideration/exchange for a premium......" Where is the disconnect?
