CIA Disclosure

Question 1

Broad areas of disclosure. (4)

Answer 1

PRINCIPLES: significant accounting principles
ESTIMATES: critical account estimates/judgements
RISK: management of insurance and financial risk
LIABILITIES: insurance liabilities and reinsurance assets

Question 2

Considerations in determining concentration risk. (4)

Answer 2

• by LOB (more is better)
• by province (geographical diversification is better)
• reinsurance (multiple sources is better)
• U/W limit (lower is better)

Question 3

Describe the requirements regarding disclosure of concentration risk. (2)

Answer 3

• how management DETERMINED the concentration

- description of shared characteristics that IDENTIFIED each concentration

Question 4

Identify 2 pieces of info that can be used to respond to requirements for disclosure of concentration risk.

Answer 4

Data by LOB or geographical region (premiums, exposures, …).