When uncollectible reinsurance is written off during the year, which item must be disclosed?

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Multiple Choice

When uncollectible reinsurance is written off during the year, which item must be disclosed?

When a reinsurance recoverable is written off as uncollectible, the important disclosure is the identity of the reinsurer. Revealing the reinsurer’s name flags the specific counterparty that could not be paid, allowing users to assess counterparty risk, concentration, and solvency implications. This kind of disclosure focuses on who the exposure was with, rather than on performance measures like losses incurred, LAE incurred, or premiums earned, which describe period results but do not identify the counterparty involved in the write-off.

When a reinsurance recoverable is written off as uncollectible, the important disclosure is the identity of the reinsurer. Revealing the reinsurer’s name flags the specific counterparty that could not be paid, allowing users to assess counterparty risk, concentration, and solvency implications. This kind of disclosure focuses on who the exposure was with, rather than on performance measures like losses incurred, LAE incurred, or premiums earned, which describe period results but do not identify the counterparty involved in the write-off.

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