Insurance of non-insurance risks
Entity A agrees to compensate Entity B for losses on a series of contracts issued by B that do not transfer significant insurance risk. These could be investment contracts or, for example, a contract to provide services.
The contract is an insurance contract if it transfers significant insurance risk from B to A, even if some or all of the underlying individual contracts do not transfer significant insurance risk to B. The contract is a reinsurance contract if any of the contracts issued by B are insurance contracts. Otherwise, the contract is a direct insurance contract. [IFRS 4.IG2 E1.29].