(paragraph 6, Appendix A and paragraphs B2-B30 of IFRS 17)

BC67 The definition of an insurance contract determines which contracts are within the scope of IFRS 17 and outside the scope of other IFRS Standards. The definition of an insurance contract in IFRS 17 is the same as the definition in IFRS 4, with clarifications to the related guidance in Appendix B of IFRS 4 to require that:

(a) an insurer should consider the time value of money in assessing whether the additional benefits payable in any scenario are significant (see paragraph B20 of IFRS 17 and paragraph BC78); and

(b) a contract does not transfer significant insurance risk if there is no scenario with commercial substance in which the insurer can suffer a loss on a present value basis (see paragraph B19 of IFRS 17 and paragraph BC78).

BC68 The following aspects of the definition of an insurance contract are discussed below:

(a) the definition of a contract (see paragraphs BC69-BC70);