In topic 4, the focus is on categorizing insurance types, specifically regarding the portfolio management under TFRS 17. The key requirement is that portfolios must be managed together and exhibit similar risk nature, such as short-term versus long-term durations,

This chapter will cover two key issues: one regarding Coverage Period and Coverage Term, and the other concerning the recognition date for coverage or calculation

Topic 2 is more critical to non-life insurance business than life insurance, with fronting business being slightly more emphasized. In this perspective, there are three stakeholders: a Policyholder Company (The company that buy insurance policies); a Fronting Company; and a Captive Insurance Company. These three companies can engage in a special form of transaction together that requires special attention and are brought for adjustment under TFRS 17.