14 Jun 2022
IFRS 17: The Premium Allocation Approach
In 2017, the IASB issued the new comprehensive insurance accounting standard IFRS 17, amendments followed in 2020. In addition to its general model, IFRS 17 introduces a simplified approach, the Premium Allocation Approach (PAA) applicable for certain contracts of relatively short duration, typically found often in non-life insurance. The PAA is the preferred approach for most non-life insurance companies, wherever eligible. The assessment of the eligibility for the PAA requires certain considerations about the features of the contract and the measurement deviates in details from the usual unearned premiums liability as in traditional insurance accounting.
Organised by the EAA – European Actuarial Academy GmbH.
The web session is suited for actuaries and accountants with both knowledge of the general model of IFRS 17 and of the mechanics of traditional accounting for non-life insurance contracts. The background knowledge is necessary since there will be no time to introduce those concepts.
Please check with your IT department if your firewall and computer settings support web session participation (the programme Zoom is used for this online training). Please also make sure that you are joining the web session with a stable internet connection.
Purpose and Nature
To enhance the applicability of the PAA, judgment of the details of the eligibility criteria is needed. We will discuss those details and the hurdles included. Further, we will discuss the details of the PAA measurement particularly in comparison with traditional methods which might be applied as approximation. The combination of the simplified approach together with the general model to be applied to the claims liability is a further topic.
The language of the web session will be English.
Stefan accompanied the IASB insurance project from 1998 onwards at the DAV, IAA and KPMG. Since 2000, Stefan is responsible in KPMG for actuarial issues of IFRS insurance accounting. He is member of the Insurance Accounting Committee of the IAA.