English to Arabic Bus/Financial Business/Commerce (general)

1.1.1 Onerousity Assessment
As part of IFRS 17 requirements, all products (group of contracts with similar risks and managed together) are subject to a further test to assess the profitability before allocating into groups.
GIG Parent evaluates all products at each UW year by considering:
 All expected cash inflows (premium and issuance fees) during the contract period
 All expected cash outflows (acquisitions, admin expenses, claims, risk adjustment, etc.)
 Then, applying discounting (to reflect the time value of money)
 If the present value of outflows outweighs the present value of inflows, then the product is classified as “Onerous”, and a loss component (for the excess losses) is calculated and recognized immediately
As of the valuation date, GIG Parent classified the following products as “Onerous” for cohort 2023 (while all other products are classified as profitable):