IFRS17 requires to account for reinsurance contracts, both held and issued, applying the same principles as for insurance contracts in general. However, there is some special guidance for reinsurance contracts held, particularly regarding the risk adjustment and the CSM and Loss Recovery Component. Applying the general guidance to reinsurance contracts, both held and issued, implies challenges due to the often complex character, retroactive coverage and risk-attaching features. Notably, the guidance referring to contract boundaries and investment components causes issues, as well as the incorporation of reinsurance contracts in the risk management of consolidated groups of companies. The challenges often bring the interpretation of the accounting guidance, developed traditional direct insurance contracts in mind, to its limits.

The web session is suited for actuaries with good knowledge of the measurement approaches of IFRS 17 and of the reinsurance business. The background knowledge is necessary since there will be no time to introduce those concepts.

Technical Requirements
Please check with your IT department if your firewall and computer settings support web session participation (the programme Zoom will be used for this online training). Please also make sure to join the web session with a stable internet connection.

The web session will cover the guidance of IFRS 17 specific for reinsurance contracts, explain their meaning and background, and discuss practical challenges in implementing the guidance. Further, some exemplary challenges arising from applying the general guidance to reinsurance contracts, particularly more complex forms, will be explained. The session will focus mainly on risk cessions, i.e. P&C coverage.

The language of the web session will be English.

Stefan Engeländer
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 was for more than 20 years member of the Insurance Accounting Committee of the IAA and is now member of the respective working party of the DAV.

André Berndt
After many years as non-life reserving actuary in the reinsurance industry, André joined KPMG, where he has been closely following the development of IFRS 17 and its practical implementation since 2013. André is an expert for IFRS 17 non-life primary insurance and reinsurance at KPMG Germany and has extensive IFRS 17 consulting experience in supporting several insurance and reinsurance groups in actuarial and accounting workstreams.