General Model Examples: Part A

The examples provided in this book demonstrate the intricacies of the General Model or Building Block Approach (BBA) under IFRS 17, which emphasises the recognition, measurement, presentation, and disclosure of insurance contracts within the context of the insurer’s financial statements. Through these examples, we see how the initial estimates of the Contractual Service Margin (CSM), present value (PV) of future cash flows, and Coverage Units evolve over time with changes in mortality rates, discount rates, and policyholder behaviour.