6/7 May 2021
Understanding IFRS 17
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 Istituto Italiano degli Attuari.
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.
Please check with your IT department if your firewall and computer settings support web session participation. Please also make sure that you are joining the web session with a stable internet connection.
Purpose and Nature
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.
Carsten HorstCarsten Horst is Director at the Hannover Office of PricewaterhouseCoopers GmbH WPG. He is responsible for the Actuarial Services team located in Northern Germany and covers PwC Germany’s IFRS17 actuarial activities with focus on the valuation and accounting of all (re-)insurance business. Carsten has more than 13 years of experience in consulting and audit. Topic-wise his focus lies on primary life insurance as well as on life and health (re-)insurance, risk management and regulatory topics in this area. Recently his consulting activities are mainly focussing on finance transformation topics around Solvency II and IFRS. Prior to joining PwC Carsten has been working several years in the Risk & Actuarial practice of KPMG. Carsten is a qualified Actuary DAV. He is a member of the IFRS working group of the DAV and responsible for several PwC engagements regarding the implementation of IFRS 17.
David Richter David Richter is Director within the Actuarial Services Team of PricewaterhouseCoopers GmbH WPG focusing on Actuarial Modernisation and actuarial/risk/accounting intersectional topics (e.g. Solvency II, Fast Close and of course IFRS 17). He is currently in charge of several actuarial audits of large international insurance groups, model reviews and IFRS 17 projects. As such, David contributes to the current discussions around IFRS 17 within PwC, in the German Actuarial Association and with clients. Prior to joining PwC, David has been working in the actuarial department of one of the biggest German health insurers. David is member of several actuarial working groups of the German Actuarial Association (DAV), lecturer for DAA and EAA and presented at the ICA 2018.
Lars OehlmannLars Oehlmann is a Manager within the Actuarial Services Team of PricewaterhouseCoopers GmbH WPG focusing on topics regarding the valuation and accounting of life insurance business. He has five years of experience working in consulting and audit projects, including several large globally operating insurance groups. Lars is a qualified Actuary DAV and has extensive IFRS 17 experience due to ongoing IFRS 17 implementation projects and proactive assurance engagements. In addition he is engaged in several actuarial audits of large global insurance groups as well as in consulting projects regarding actuarial models and actuarial review.
Adam KallinAdam Kallin is a Senior Manager in the Actuarial Services department of PricewaterhouseCoopers GmbH WPG, on secondment from PwC US LLC. Adam is a non-life actuary with more than 9 years of experience in consulting and audit. Adam's clients have included large and small insurance companies, reinsurance companies, and large self-insured corporations. Adam's areas of expertise include valuation of property & casualty loss reserves, compliance with local and international accounting regulations, and IFRS 17. Over the past four years, Adam has provided consulting to a number of international insurers at various stages on their IFRS 17 journeys. Adam has presented on IFRS 17 topics at seminars of PwC, the Casualty Actuarial Society, and other actuarial organizations. Adam is a Fellow of the Casualty Actuarial Society.