Insurance contracts – IFRS 17

IFRS 17 will fundamentally change the accounting requirements for insurers. The insurer will need to use new measurement models and accounting principles, which will increase the comparability of financial statements. This will result in significant changes to how the profit will be recognised, the way the financial information will be presented, and the adoption of the standard will need extensive planning. There are a number of decisions and choices to be made when implementing the new standard. Our IFRS 17 specialists will explain the key areas of risk and critical success factors in an IFRS 17 implementation project.

Our course is designed to get an initial working knowledge of the rules, how the numbers are constructed and presented and the story that they are telling.

Objectives

By the end of this course, participants will be able to understand:

• the key steps of the IFRS 17 journey, prescribed measurement models, new concepts introduced by the standard and applicable transition options;
• why the insurance service revenue concept was introduced and how it affects all aspects of reporting under IFRS 17, including systems and tools, data and end to end processes, people and capabilities, organisational set-up;
• the new process of best estimate assumptions setting, potential challenges in experience studies run by actuaries;
• the requirements for presentation of financial statements and disclosure;
• the areas of significant impact, including product design, KPIs, budgeting, processing and data storages;
• the modelling and valuation implications, key drivers of profit emergence.

IFRS 17 overview

• Timeline and milestones – IFRS 4 and IFRS 17
• Key features of IFRS 17 compared to IFRS 4
• Scope of IFR S17

Recognition and measurement models

• Initial recognition – decision tree
• General measurement model
• Premium allocation approach
• Variable fee approach
• Comparison of approaches, practical considerations

CSM as new revenue recognition concept

• What and why
• Unit of account and level of aggregation

Insurance service revenue

Presentation under IFRS 17 and IFRS 4

Transition

• Options available
• Data requirements
• Practical challenges

Illustrative example and case study (practical)

Transition, key steps in IFRS 17 journey

This training is coordinated by Pavel Kostyuchenko.

Pavel is actuarial director at PwC Luxembourg and has wealth of experience in IFRS17 implementation projects, including gap analysis, financial impact assessment, accounting advice, etc. The training will be supported by other experts of PwC Luxembourg daily involved in the implementation of the IFRS for insurers.