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Aggregation and diversification of the IFRS 17 Risk Adjustment
Under IFRS 17 the risk adjustment for non-financial risk is "...the compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risks as the entity fulfils insurance contracts". The calculation method is not prescribed and is the choice of the insurance company, subject to the principles detailed in paragraphs B91 and B92 of the standard.