IFRS 17 - Technical aspects

IFRS 17 has fundamentally changed the accounting requirements for insurers.

Two years of reporting post-transition have helped deepen the understanding of the specificities of the new measurement models and accounting principles. For many insurers, the initial IFRS 17 reporting challenges have been addressed, although some tactical workarounds are still required. Successful adoptions have been driven by effective use of data and technology, supported by strong collaboration between actuarial and finance teams.

This course is a continuation of the 'Insurance contract - IFRS 17 - Foundation' module on IFRS 17 concepts. It provides in-depth materials on the practical implementation of IFRS 17 for typical insurance products. Examples will be discussed and walked through in Excel, and the impacts on key reporting figures will be illustrated using a set of stress scenarios.

By the end of this training, participants will be able to understand how to implement the key IFRS 17 concepts by creating cash flow models and illustrative accounts for insurance products, specifically:

• Mechanics of opening CSM calculation
• Patterns of components of revenue release (CSM, RA, BEL)
• Illustration of operating experience — scenarios where actual experience deviates from assumptions, and the resulting impacts on underwriting results
• Changes in operating assumptions and their impacts on IFRS 17 figures
• VFA model vs GMM model for 'investment' like products - how to manage volatility

• Understanding the measurement models
• Highlight on potential operational challenges
• Key financial effects to be aware of
• Practical illustration of IFRS 17 modelling and accounting
• Post implementation observations and lessons learnt

This training is coordinated by Pavel Kostyuchenko and will be supported by other experts of PwC Luxembourg daily involved in the implementation of the IFRS for insurers.
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Pavel is an actuarial partner at PwC Luxembourg and has a wealth of experience in IFRS 17 implementation projects, including gap analysis, financial impact assessment, accounting advice, etc.