50After an entity has recognised a loss on an onerous group of insurance contracts, it shall allocate:

50 After an entity has recognised a loss on an onerous group of insurance contracts, it shall allocate:
(b) solely to the loss component until that component is reduced to zero:
(i) any subsequent decrease relating to future service in fulfilment cash flows allocated to the group arising from changes in estimates of future cash flows and the risk adjustment for non-financial risk; relating to future service and
(ii) any subsequent increases in the amount of the entity’s share of in the fair value of the underlying items solely to the loss component until that component is reduced to zero.
Applying paragraphs 44(c)(ii), 45(b)(iii) and 45(c)(iii), an entity shall adjust the contractual service margin only for the excess of the decrease over the amount allocated to the loss component.
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| Paragraphs 53 and 55–56 are amended. New text is underlined and deleted text is struck through. |

Premium allocation approach

53 An entity may simplify the measurement of a group of insurance contracts using the premium allocation approach set out in paragraphs 55–59 if, and only if, at the inception of the group:
(b) the coverage period of each contract in the group (including insurance contract services coverage arising from all premiums within the contract boundary determined at that date applying paragraph 34) is one year or less.
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