IFRS 17 Risk Adjustment: Practical Approaches & Lessons Learned

Einleitung/Dauer

The IFRS 17 standard for Insurance Contracts, published in 2017, has triggered significant implementation projects worldwide. One crucial aspect of IFRS 17 is the concept of risk adjustment, which plays a vital role in measuring the compensation that the entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risks of insurance contracts.

As IFRS 17 is intended to be principle based, also for the risk adjustment the standard does not specify a concrete estimation technique to be used compulsory. Accordingly, an entity needs to apply judgement when determining an appropriate estimation technique for the risk adjustment.

As experience shows, the implementation of the methodologies and concepts used to determine the risk adjustment under IFRS 17 requires active involvement of actuaries. In addition, the principle-based requirements of IFRS 17 lead to a number of different measurement and accounting concepts used for IFRS reporting, like Cost-of Capital- and Value at Risk-Approaches.

Actuaries have been responsible for making key fundamental decisions and performing of regular assessments and judgements, that impact the amount of the risk adjustment and accordingly its development. They play a key role in explaining these assessments and judgements, the impact on valuation, and the corresponding consequences for financial statements to top management.

Preliminary Programme
Thursday, 19 November 2026
10:00-10:30  General concept of the Risk Adjustment
10:30-11:45  Practical Implementation of Methodological Concepts in IFRS 17: Deep-Dives on Cost of Capital Approach and Value at Risk Approach
11:45-12:00  Further Aspects concerning the Risk Adjustment in practice

All the above times are given in CET (Central European Time).

Vorgehensweise und Ziele

The session aims to provide participants with a comprehensive introduction regarding the risk adjustment concept under IFRS 17. We will shed light on the general concepts behind risk adjustment and its application within IFRS 17 and illustrate the importance of risk adjustment in measuring, presenting, and disclosing insurance contracts.

The online training will also provide insights into the most commonly used practical methodical concepts. Practical examples and case studies will be used to illustrate the application of risk adjustment within the IFRS 17 framework.

In addition, insights into emerging market views will be shared, and participants will have the opportunity to discuss these topics. Challenges and considerations specific to the European markets will also be discussed.

By formulating the points in this way, participants will gain a clear understanding of the objectives of the training and how it will assist them in navigating the complexities of risk adjustment within the IFRS 17 framework.

Teilnehmer

This web session is designed to be valuable for participants affected by IFRS-reporting, for example working as actuarial, finance, controlling or risk experts. It is also beneficial for those interested in gaining a deeper understanding of the practical application of this critical component of the standard. The session will provide insights and guidance on good practices for implementing the risk adjustment within the framework of IFRS 17.

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

Lars Oehlmann
Lars Oehlmann is a Senior Manager within the Actuarial Risk Modelling Services Team of PricewaterhouseCoopers GmbH WPG focusing on topics regarding the valuation and accounting of life insurance business. He has ten 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 long lasting IFRS 17 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.

CPD Credits
For this web session, the following CPD credits are available under the CPD scheme of the relevant national actuarial association:

• Austria: 2 points
• Belgium: 2 points
• Bulgaria: 3 points
• Croatia: individual accreditation
• Czechia: 2 hours
• Denmark: 2 credits
• Estonia: 2 hours
• Finland: 2 points
• France: 12 points
• Germany: 2 hours
• Greece: 3 points
• Hungary: 2 hours
• Iceland: 2 credits
• Ireland: 2 hours
• Italy: individual accreditation
• Latvia: 2 hours
• Lithuania: 2 hours
• Netherlands:  approx. 2 points (individual accreditation)
• Norway: 2 points
• Poland: 2 hours
• Portugal: 2 hours
• Serbia: 2 hours
• Slovakia: individual accreditation
• Slovenia: individual accreditation
• Spain: CAC: 2 hours, IAE: 2 hours
• Switzerland: individual accreditation
• USA: SOA (Section B): up to 2.4 hours

No responsibility is taken for the accuracy of this information.