IFRS 17 for Insurance Contracts
On 18 May 2017, the IASB issued long-awaited IFRS 17 Insurance Contracts which replaces IFRS 4, which was brought in as an interim Standard in 2004. This standard for insurance contracts will help investors and others better understand insurers’ risk exposure, profitability and financial position. This new standard IFRS 17 shall become effective from 1 January 2023 but companies can apply it earlier.
The implementation of IFRS 17 will be a major challenge to insurers and investors, fundamentally changing accounting and reporting practices. This course shall help professionals in understanding a clear roadmap for implementing the IFRS 17 and also interaction with regulatory (Solvency II) and other major accounting changes. Therefore, we have created this two-day in-depth workshop to give you a detailed insight into this new standard and implementation challenges involved.
What would you gain from this course?
The programme shall cover all the key aspects of IFRS 17 and shall answer some of the following critical areas:
- In-depth walk-through of the general model, as well as the premium allocations (PAA) and variable fee, approaches under IFRS 17;
- Discounting and related issues
- Contract Boundaries
- Risk adjustment and deferral of up-front profits through the Contractual Service Margin (CSM);
- Impact on the following type of contracts:
- Long-term and whole life insurance;
- Inflation-linked annuity contracts;
- Immediate annuities;
- Universal life-type contracts;
- Reinsurance written
- general insurance contract
- Short-term general insurance
- Short-term life and certain group contracts
- Unit-linked contracts;
- Continental European 90/10 contract and many more
- Understand how claims’ reserves and insurance liabilities would be impacted;
- overview of financial reporting requirements for insurers;
- Highlighting some common pitfalls to avoid;
- Detailed worked examples and case studies will be integrated into the course to reinforce key points;
- How to present insurance contracts;
- A better understanding of drivers of income statement volatility and insurance liabilities;
- Enhanced processes and controls for insurance contracts and related liabilities.
Our trainers have specialist knowledge and first-hand experience of implementing the International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), Generally Accepted Accounting Principles (USGAAP), Risk management strategies, Management practices, Compliance matters such as Basel regulations, Solvency II, Anti Money Laundering regulations and number of other evolving regulatory matters. This ensures an engaging and stimulating learning experience for professionals and senior executives, helping to ensure knowledge is retained. They understand the accounting and regulatory requirements, risk environment, industry issues and challenges, risk management strategies, financial reporting & disclosure requirements, and compliance environment. They impart their knowledge using real-life industry examples, simple and user-friendly presentation of important concepts/approaches and case studies.
Instructor for this Programme
- Scope of IFRS 17 (Phase I and II)
- Definitions • Recognition and Measurement
- Current Market Practices
- Classification of Insurance Products
- Insurance contracts
- Life, Non-life, investment and Reinsurance contracts
- Short duration contracts
- Long duration contracts
- Significant insurance risk
- Written and earned premiums
- Acquisition costs and Insurance Premium Tax
- Underwriting and claim years
Building Block Approach (BBA)
- Fulfillment Cash Flows (FCF)
- Risk adjustment
- Contractual Service Margins (CSM)
- Current Market Price
- Group Case Studies
Premium Allocation Approach (PAA)
- PAA Approach under IFRS 17
- Liability for remaining coverage (LRC)
- Liability for insured claims (LIC)
- PAA Vs. BBA
- Current Practices
- Group Case Studies
Variable Fees Approach (VFS)
- VFS approach under IFRS 17
- Current Practices
- VFS and its applicability to certain types of contracts
- Group Case Studies
Insurance Reserves (Life and non-life) – Current Practices Vs. IFRS 17
- Participating and non-participating contracts
- Insurance liabilities and Claims Reserves
- Unearned Premium Reserves
- Liability adequacy test and unexpired risk provisions
- Salvage and subrogation
- Equalisation reserves
- Structured settlements
- Definition of a re-insurance contract
- Re insurance contracts under IFRS 17
- Classification of contracts
- Financial reinsurance
- Retrospective reinsurance
- Non-coterminous policies
- Gains/losses at inception
- Deferred settlement
Presentation of Financial Statements under IFRS 17
- Current Practices Vs. IFRS 17 requirements
- Statement of Financial Performance under IFRS 17
- Statement of Financial Position under IFRS 17
- Cash Flows under IFRS 17
- How to educate market participants/stakeholders.
- Group Case Studies
- Specific accounting principles
- Changes in accounting policies including estimates
- Transition to IFRS 17 and Implementation Road map
- Changes in estimates
Notes to the Financial Statements
- Critical accounting issues and estimation uncertainty
- Insurance and financial risks
- New Disclosure requirements
- Events post reporting period
Solvency II and Capital management
- Key requirements of Solvency II
- Solvency II Vs. IFRS 17
- Synergies and Gaps
IFRS 9 and its interaction with IFRS 17
- Classification & Measurement under IFRS 17
- Embedded derivatives
- Shadow Accounting VS IFRS 9
- Critical gaps and risk hedging
- Deferral Vs. Overlay approach
- Group Case Studies
Transition to IFRS 17
- Retrospective Approach
- Modified Retrospective Approach
- Fair Value Approach
- Transition Approach and Models
- Transition Planning
- Project Planning
- IT Solutions
- Operating Model
- Case Studies
Why you must attend?
With more and more countries adopting the IFRS as their accounting standards (almost over 140 countries) and also due to regular revisions and replacement of existing standards & principles, you must continue to develop your conceptual and practical understanding of IFRS. If you intend to use IFRS for the first time then you must have the required knowledge and skills to implement the IFRSs, be able to understand how this transition affects company’s reporting, and what it means going forward. If you have already implemented IFRS even then you need to make sure that you continue to invest your time in learning and keep yourself updated with further changes to the IFRS.
We have designed this course to give you all the required knowledge, skills and understanding to deal with the implementation challenges in relation to IFRS 17. We have one of the best and most experienced faculties in the world, with over 15 years of IFRS implementation experience in the European region and working with a number of clients in the emerging markets.
Class sizes are limited (Maximum 10 participants per class) to preserve maximum interactivity and to enhance the fulfillment of learning outcomes. Some of the key features of our training courses are:
- Expert IFRS instructors with field experience;
- Distinct scenarios, examples and case studies to explain concepts and methodologies;
- A firm grounding for developing skills and competencies essential for financial reporting
- Access to IFRS templates, tools, models and resources
- Opportunities to discover new career path in IFRS/US GAAP
- User-friendly slide deck which summarises the concept, methodology, and principles in a simplest possible manner;
- Interactive sessions with real life case studies;
- Concepts and methodologies are explained using examples and distinct scenarios;
- Group exercises to illustrate accounting principles;
- Discussion on GAAP differences, industry issues, and diversity in practices
- Additional course material and handouts to all the attendees
- Participants are encouraged to ask questions.
Who should attend?
This course is suitable for professionals (beginners to specialists) from all industry groups. Examples of some of the roles that will benefit from this course are:
- Chief Financial Officers/ Finance Directors;
- Finance executives
- Corporate finance function;
- Accountants / Financial Controllers
- Financial Reporting Executives
- Budget Officers / Forecasting Specialists;
- Auditors (internal/External)
- Risk managers
- Merchant bankers
- Tax Directors /managers
- Accountancy students
- Fund Managers and Investors
- Strategic and Financial Planners
- Private Equity and M&A Specialists
- Investment Bankers
- Corporate Bankers
- Investment Managers
- Senior operations managers
All delegates will receive an evaluation questionnaire upon completion of the course. The feedback from these questionnaires allows Shasat to conduct trend analysis and continuously improve the quality of its learning solutions.
Venue & other info
We will send you the joining instructions with venue details at least 2 weeks before the commencement of the training program.
If you are seeking to profile your products, expertise and experience then Shasat will endeavour to assist your business objectives with opportunities such as:
- Targeted brand awareness and the association of your company with this area of expertise.
- Present your expertise to a targeted group of industry leaders.
- Exhibit your products to new prospective clients already attending this conference.
We will provide you with a platform to meet face to face with a room full of potential clients and exhibit the benefit of your services. For more information on how Shasat can help you meet your marketing objectives, Contact our customer service team at email@example.com
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In order to enroll for this programme, you can either make the payment online through our website or you can opt to make the payment via bank transfer/Demand draft/Cheque payment. Our payment web page will give you all the necessary options at the time of check out. Should you face any difficulty, please do not hesitate to contact us with your selected course and our customer services team will be happy to guide you through the payment process. You must also bear all the bank charges in relation to the payment of course fees and payment must be made at least 3 weeks before the course date. Registration will be confirmed upon receipt of payment and completion of registration form only.
You must enrol at least three participants in this program to obtain this special price. We will offer additional 10% discount provided you enrol 6 or more participants. Please contact our customer services desk at email@example.com to discuss further on how to obtain a group discount code.
Each participant will be issued a training certificate which will certify that you have successfully completed the training course and the number of hours you spent to complete this training course.
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Besides our wide range of public courses, we are proud to offer our In-house training services to our Global clients. This form of training is tailored to meet your business needs and also an effective way of training your teams which saves time and money and will improve the productivity of your employees, making your business more competitive. If you would like to run this course as an In-house programme in your organisation with the necessary customization to suit your needs then please contact us today to discuss this further.