Insurance arrangements (AASB1056_12-23)

A superannuation entity acting in the capacity of an insurer shall:

(a) recognise liabilities and assets arising from its insurance and reinsurance arrangements;

(b) measure liabilities and assets arising from insurance and reinsurance arrangements using the approach to measuring defined benefit member liabilities; and

(c) if reinsurance assets are impaired, reduce the carrying amount of those assets and recognise the impairment in the income statement.

A reinsurance asset is impaired if, and only if:

(a) there is objective evidence, as a result of an event that occurred after initial recognition of the reinsurance asset, that the entity may not receive amounts due to it under the terms of the contract; and

(b) that event has a reliably measurable impact on the amounts that the entity will receive from the reinsurer.

A superannuation entity acting in the capacity of an insurer in respect of defined contribution members that recognises insurance liabilities and assets shall disclose information that provides a basis for understanding the amount, timing and uncertainty of future cash flows relating to those liabilities and assets.

To meet the objective in paragraph 35, the disclosures would include quantitative or qualitative information in relation to:

(a) key assumptions used in measuring liabilities arising from insurance arrangements the superannuation entity provides to its members;

(b) any uncertainties surrounding those key assumptions; and

(c) any uncertainties surrounding reinsurance assets.