Insurance contract – IFRS 17

IFRS 17 fundamentally changes the accounting requirements for insurers. Insurers will need to adopt new measurement models and accounting principles, enhancing the comparability of financial statements. These changes will significantly impact the recognition of profits, the presentation of financial information, and will require extensive planning for the adoption of the standard. Implementing the new standard involves making several decisions and choices. 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 provide an initial working knowledge of the rules, the construction and presentation of numbers, and the narrative they convey.

This module is part of our insurance curriculum.

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 storage;
• 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
• Available options
• Data requirements
• Practical challenges

Illustrative example and case studies (practical)

Transition, key steps in IFRS 17 journey

This training is coordinated by Pavel Kostyuchenko.

Pavel is partner at PwC Luxembourg and has wealth of experience in IFRS 17 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.