Policies that do not transfer significant insurance risk should be accounted for as:

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Policies that do not transfer significant insurance risk should be accounted for as:

When a policy does not transfer significant insurance risk, its economics resemble a financial instrument rather than an insurance contract. In that case, it is accounted for as a financial instrument—recognized as a financial asset or liability and measured under the financial instruments framework (such as fair value through profit or loss, or amortized cost, depending on the instrument and business model). Revenue would apply to selling goods or services, intangible assets to non-physical assets with future benefits, and equity investments to ownership interests in other entities—not to a non‑risk‑transferring policy.

When a policy does not transfer significant insurance risk, its economics resemble a financial instrument rather than an insurance contract. In that case, it is accounted for as a financial instrument—recognized as a financial asset or liability and measured under the financial instruments framework (such as fair value through profit or loss, or amortized cost, depending on the instrument and business model). Revenue would apply to selling goods or services, intangible assets to non-physical assets with future benefits, and equity investments to ownership interests in other entities—not to a non‑risk‑transferring policy.

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