IFRS 17 fundamentally changes the accounting requirements for insurers. Insurers need to adopt new measurement models and accounting principles, enhancing the comparability of financial statements. These changes significantly impact the recognition of profits, the presentation of financial information, and require extensive planning for the adoption of the standard. Implementing the standard involves making several decisions and choices. Our IFRS 17 specialists will explain the key areas of risk and critical success factors in an IFRS 17 implementation project.
Our course is designed to provide an initial working knowledge of the rules, the construction and presentation of numbers, and the narrative they convey.
This module is part of our Insurance curriculum.
Duration: 4h
Language: Available in English and French. The supporting material is only available in English.
Number of participants: up to 15
Available as intra-company course (i.e. dedicated session on demand)
Objectives
By the end of this training, participants will be able to understand:
- the key steps of the IFRS 17 journey, prescribed measurement models, concepts introduced by the standard and applicable transition options;
- why the insurance service revenue concept was introduced and how it affects all aspects of reporting under IFRS 17, including systems and tools, data and end-to-end processes, people and capabilities, organisational set-up;
- the process of best estimate assumptions setting, potential challenges in experience studies run by actuaries;
- the requirements for presentation of financial statements and disclosure;
- the areas of significant impact, including product design, KPIs, budgeting, processing and data storage;
- the modelling and valuation implications, key drivers of profit emergence.
Content
IFRS 17 overview
- Timeline and milestones – IFRS 4 and IFRS 17
- Key features of IFRS 17 compared to IFRS 4
- Scope of IFRS 17
Recognition and measurement models
- Initial recognition – decision tree
- General measurement model
- Premium allocation approach
- Variable fee approach
- Comparison of approaches, practical considerations
CSM (Contractual Service Margin) as new revenue recognition concept
- What and why
- Unit of account and level of aggregation
Insurance service revenue
Presentation under IFRS 17 and IFRS 4
- Transition
- Available options
- Data requirements
- Practical challenges
Illustrative example and case studies (practical)
Transition, key steps in IFRS 17 journey
Target audience
- This course is designed for those who wish to learn about the critical technical differences between the accounting and reporting requirements of existing IFRS 4 (and industry practice) and IFRS 17. It is highly relevant to finance and actuarial team members preparing for the change in insurance contract accounting practice.
- The course is designed for executive officers, industry controllers, analysts, actuaries, auditors and finance professionals who wish to gain a working knowledge of this large new standard.
Our lead experts
This training is coordinated by Pavel Kostyuchenko, Partner at Pwc Luxembourg.
Pavel is a partner at PwC Luxembourg and has a wealth of experience in IFRS 17 implementation projects, including gap analysis, financial impact assessment, accounting advice, etc. The training will be presented by other experts of PwC Luxembourg daily involved in the implementation of the IFRS for insurers.
