WEB SESSION
28 Feb 2024
IFRS 17: The Premium Allocation Approach
The IASB issued 2017 the new comprehensive insurance accounting standard IFRS 17, with amendments issued 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 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.
Participants
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.
Technical Requirements
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 will be a further topic.
Language
The language of the web session will be English.
Lecturers
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 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.
