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 on 1st January 2023 and will fundamentally change the way insurance companies present their obligations and their financial performance stemming from insurance contracts. Since 2017, IFRS 17 has triggered major implementation projects all over the world, and although for many implementation projects more than three years have passed since the first publication in 2017, no company can afford to waste time for the ongoing implementation projects!
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.
Organised by the EAA – European Actuarial Academy GmbH in cooperation with the Society of Actuaries in Ireland.