Regulations Governing Enrollment in Postal Simple Life Insurance Policies Article 36

When the Premium Allocation Approach is applied to the contract group, there is no need to calculate the split performance cash flows and contractual service margin using the General Measurement Model or Variable Fee Approach. Instead, the remaining coverage liabilities shall be calculated based on the collected premiums in accordance with the regulations of IFRS 17, and a reserve shall be set aside for unearned premiums.When calculating the remaining coverage liabilities, the following simplification methods shall be adopted:1. If the coverage period of each contract within the group does not exceed one year, such costs shall be recognized as current expenses when cash flows from insurance occur.2. When the expected time for each part of the service provided for initial recognition is no more than one year after the expiration date of the relevant premium, the amount impacted by the time value of money and financial risks shall not be reflected.When the contract group has incurred losses during the remaining coverage period under factual and objective conditions, the general model shall be used to calculate the cash flows related to the remaining coverage period of the group, and a reserve shall be set aside for unearned premiums based on the amount of remaining coverage liabilities exceeding that referred to in Paragraph 1.