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Obligations recognised by an insurer under its insurance contracts and accounting framework.
For existing claims, the insurer estimates remaining settlement costs, including relevant claims that have occurred but are not yet reported. Obligations for remaining coverage are also measured under the relevant framework. IFRS 17 incorporates expected cash flows, time value where applicable and adjustments required by its measurement model. New information, settlement experience and assumptions can change recognised liabilities between reporting dates.
Imagine an insurer estimating J$100 million of remaining qualifying claim payments. It pays J$30 million and learns that repair costs on the unresolved claims will add J$10 million. In a simplified undiscounted illustration with no other movements, the remaining estimate is J$80 million. The liability does not remain J$100 million merely because that was the original estimate, and payment is distinct from a revised estimate.
Jamaican insurers report J$54.35 billion in Melissa payments; 983 claims remain