EAA Web Session: "Understanding IFRS 17"

Einleitung/Dauer

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. After additional three years of further debates on several actuarial and accounting-related aspects of the implementation, the IASB issued amendments to IFRS 17 on 25 June 2020, which included a postponed effective date of IFRS 17 by two years to allow for an orderly adoption and at the same time to enable more insurers to implement the new IFRS 17. The new standard is now effective since 1 January 2023 and changed fundamentally the way insurance companies present their obligations and their financial performance stemming from insurance contracts according to IFRS.

As evolving experience shows, actuaries play a key role in this area. The standard requires many fundamental decisions, which determines the amount and profile of IFRS results for years to come. Complex measurement models have been developed and the collaboration and communication with accounting functions has become more intense and more complex. Actuaries need to explain the actuarial valuation output as well as the impact of applied accounting decisions and the corresponding consequences for the financial statements to their top-management.

Accordingly, a strong focus of this web session lies on the accounting framework in which actuaries operate. It addresses the specifics of all relevant insurance lines of business and highlights key conceptual topics and options the standard offers for implementation. It will also address the impact on transition, which will often affect the financial statements for years to come. 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.

Vorgehensweise und Ziele

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. We will close with an overview of methodical most relevant topics seen in various European markets, share emerging market experience 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.

Teilnehmer

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. 

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.

Dozierende

Carsten Horst
Carsten Horst is a Partner at PricewaterhouseCoopers GmbH WPG. He is responsible for the Life Actuarial Risk Modelling Services and covers PwC Germany’s IFRS17 actuarial activities with focus on the valuation and accounting of all (re-)insurance business. Carsten has more than 17 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 IFRS and Solvency II. Carsten is a qualified Actuary DAV, a member of the Accounting and Regulation Committee as well as a member of the IFRS working group of the German Actuarial Association (DAV). He is responsible for several PwC engagements regarding the implementation of IFRS 17.

Lars Oehlmann
Lars Oehlmann is a Senior Manager within the Actuarial Services Team of PricewaterhouseCoopers GmbH WPG focusing on topics regarding the valuation and accounting of life insurance business. He has nine 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 projects and 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.

Sprache/Kurztitel

The language of the web session will be English.