TFRS 17 Sigorta Sözleşmeleri: Kâr veya Zarara Göre Sözleşmeye Dayalı Hizmet Marjının Değerlendirilmesi
TFRS 17 Insurance Contracts: Evaluating the Contractual Service Margin Based on Profit or Loss

Summary/Abstract: Purpose ‒ Turkish Financial Reporting Standard (TFRS) 17 To give various calculation examples by explaining the evaluation of the contractual service margin within the scope of Insurance Contracts in profit or loss depending on economic and other conditions. Design/methodology/approach ‒ The study is handled from a theoretical perspective in terms of evaluating the domestic and foreign literature, examining the applications of TFRS 17 Insurance Contracts and researching the periodicals and resources on the internet. Findings ‒ Legislative arrangements made in insurance branches and today's health, economic, war, etc. The financial crisis has a significant negative impact on the insurance industry. The costs in insurance contracts cannot be known exactly until a certain time. For this reason, it is important to determine how both the costs related to the premiums earned and the premium paid will be evaluated over time by the insurance companies. TFRS 17 introduces a new measurement model to the insurance liability and requires discounted cash flows and risk adjustment. TFRS 17; It enables businesses to reason and evaluate the inputs, assumptions and calculation techniques used to determine the contractual service margin in each reporting period (determination of insurance coverage units, creation of loss component and processing of profit sharing policies). Discussion ‒ Preventing the loss of funds by providing access to financial instruments specific to the insurance sector, bringing the discount rates to reasonable levels, taking measures for existing portfolios in the short term, making technical arrangements, taking measures to eliminate the factors that increase the real indemnity burden between the insurer and the insured, and solving the issue of depreciation and according to independent actuarial calculations, it is foreseen that making the ceiling premiums suitable will make it easier for the insurance companies to respond to the economic problems they experience and the effective implementation of the TFRS 17 insurance contracts standard by the businesses.

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