Understanding IFRS 17

Announcements from the European Actuarial Academy organiser: 

In 2017, after more than two decades of debates, outreach and Exposure Drafts, the IASB finally published the new IFRS 17 standard for Insurance Contracts. Following an additional three years of further debates on several actuarial and accounting-related aspects of the implementation, contributed by various stakeholders, the IASB issued amendments to IFRS 17 on June 25th 2020 – with the aim of assisting companies in implementing IFRS 17 and making it easier for them to explain their financial performance. To allow for an orderly adoption and at the same to enable more insurers to implement the new IFRS 17, the IASB has postponed the effective date of IFRS 17 by two years. The new standard will now become effective soon, on 1st January 2023 and will fundamentally change the way insurance companies present their obligations and their financial performance stemming from insurance contracts.

As evolving experience shows, actuaries will play a key role in implementing the new guidance: The standard will require many fundamental decisions, which will determine the amount and profile of IFRS results for years to come. Actuaries will need to explain the decisions as well as their impact on valuation and the corresponding consequences for the financial statements to their top-management and will therefore play a key role in the preparation of landmark decisions.

Complex measurement models will need to be developed, starting with prototypes, providing a starting point for an impact analysis, and will then gradually evolve into audit proof applications. The output of these models will need to be integrated in the financial reporting processes under fast-close requirements. Close collaboration and communication with accounting functions will become more intense and more complex – as will be the modelled output.

Accordingly, a strong focus of this web session lies on the accounting framework in which actuaries operate. It will address the specifics of all relevant insurance lines of business and highlight key conceptual topics and options the standard offers for implementation. It will also address the transition period. The web session will be useful for both finance and actuarial experts involved in IFRS 17 implementation or simply interested in the practical application of this ground-breaking new standard.

This web session is suited for all individuals interested or involved in financial reporting according to IFRS, such as actuaries (or specialised accountants and controllers with a quantitative background) involved in valuation, controlling, auditing and consulting.

Participants are expected to have general accounting and actuarial knowledge and a general understanding of IFRS Financial Statements, in particular with respect to the Statement of Comprehensive Income and its components.

The goal of the two-day web session is to provide participants with a comprehensive introduction to the new measurement, presentation and disclosure guidance for insurance contracts. It will cover life, health and non-life business, including the special guidance on direct participating contracts and shorter term non-life contracts and give useful examples.

In the web session, we will first shed a light on the context of accounting for insurance contracts within the IFRS 17 framework. We will present and discuss the general concepts behind the new model and refer to the application of valuation models like the Variable Fee Approach (VFA) and the Premium Allocation Approach (PAA). The web session will proceed with a discussion of topics specific to individual lines of business (highlighting topics still under discussion) and summarize potential approaches and solutions. We will close with an overview of methodical hot topics relevant for technical implementation seen in various European markets, share emerging market views and discuss these with the participants.

Overall, the goal is to enable participants to understand the standard and help transferring the requirements into your specific situation. It is thus intended to prepare participants for model development, implementation, testing, reviewing and consulting with management, accounting and auditors.

Technical requirements: Please check with your IT department if your firewall and computer settings support web session participation (the programme Zoom is used for the web session).

Click here to make a reservation. The registration fee is € 600 plus 19% VAT until 20 October 2021. After this date, the fee will be € 780 plus 19% VAT.