IFRS 17 Implementation and Actuarial Challenges Workshop (Including recent amendments)
This new standard IFRS 17 shall become effective from 1 January 2023, therefore, the countdown for implementation has started.
With the introduction of IFRS 17, the actuarial involvement has significantly deepened and broadened in the industry. It is clear now that the actuarial input is absolutely essential to assure both the technical correctness and clarity of the approach proposed in the accounting standard.
The actuarial teams shall now need to implement a new valuation basis requiring changes to the actuarial model, data, methodologies, contract boundaries and also areas which were previously not the responsibilities of actuaries (such as the calculation of revenue and CSM will also rely on probability-based assessment) may now fall to the responsibility of actuaries. The actuaries now need to have more close coordination with the finance teams.
IFRS 17 Insurance Contracts will require a close cooperation between accountants and actuaries, much more than other accounting standards applied so far. This course will focus on the actuarial work to be done for IFRS 17, providing the necessary context as well as the specific treatment of active and passive reinsurance.
The implementation of IFRS 17 will be a major challenge to insurers and investors, fundamentally changing accounting and reporting practices. This course shall will help actuaries in understanding and debating a clear roadmap for implementing the IFRS 17 and how far the actuarial model needs to be modified and redesigned.
We have created this two-day in-depth workshop to give you detailed insight into this new standard and implementation challenges involved.
What would you gain from this course?
The programme shall cover all the actuarial aspects of IFRS 17 and the overall implementation challenges and best solutions.
- In-depth understanding of the Building Blocks Approach (BBA), Premium Allocation Approach (PAA) and Variable Fees Approach (VFA) under IFRS 17;
- Impact on Actuarial Modelling;
- Risk adjustment and deferral of up-front profits through the Contractual Service Margin (CSM);
- How the risk adjustment should be calculated to reflect management’s appetite for risk over the run-off of the claims reserves.
- The extent to which the illiquidity of cash flows should considered in the discount rates.
- 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;
- Better understanding of drivers of income statement volatility and insurance liabilities;
- Enhanced processes and controls for insurance contracts and related liabilities.
Instructor For This Programme
Michael Winkler is a reputed actuary and provides advisory services to reinsurance and insurance companies in the area of Financial Solutions, mainly focused on Solvency II and IFRS 17. Besides working on the actuarial models, he is supporting few major reinsurance companies on the specific impact of the IFRS 17 and potential measures mitigating adverse effects.
Michael has spent many years working for the life insurance and reinsurance firms. Michael was the Chief Actuary at Union Re. In 1998, due to the merger Union Re became Swiss Re and Michael became head of the actuarial department at Swiss Re. He was leading the international project group developing the first Spanish annuitant mortality tables in 2000 and was the author of the Swiss Re publication “To live and let pay. Longevity and pensions insurance in Europe“
In 2001, he rejoined Winterthur Life & Pensions as the head of the global unit-linked initiative. As of 2002, he became responsible for the international knowledge exchange and the product development and management within Winterthur’s Life & Pensions units in 18 countries. After Winterthur’s merger with AXA, Michael Winkler joined New Re and built up the life team in Zurich from scratch, focusing on two business lines for which New Re got an exclusive mandate within Munich Re group: financing transactions in Europe and reinsurance of financial market guarantees – in particular of Variable Annuities worldwide.
- Session 1: Introduction & amp; scope of IFRS 17
- Key principles,
- Contracts in scope,
- Grouping of contracts
- Session 2: The general accounting model:
- Fulfilment cash flows and their estimation,
- Risk adjustment,
- Contractual service margin;
- onerous contracts, and
- loss component,
- Initial recognition
- Subsequent measurements and changes,
- Separating components
- Session 3: Modelling challenges
- Modelling cash flow projections
- Best estimate assumptions
- Stochastic vs deterministic approaches
- Differences to Solvency II cash flows
- Risk adjustment: quantification and amortization pattern
- Differences to Solvency II risk margin
- Session 4: Presentation and disclosure:
- Statement of position;
- Statement of income or expense,
- Statement of cash flows;
- Disclosure requirements and reconciliations
- Session 5: Other Approaches
- Premium allocation approach;
- Variable fee approach;
- How to execute
- Session 6: Reinsurance contracts:
- Accounting for reinsurance contracts;
- Effect of reinsurance;
- Difference to insurance contracts
- Session 7: Required processes and inputs:
- Actuarial processes required;
- Relation to risk processes;
- Accounting systems
- Session 8: Contracts with participation features and transition
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 IFRSs. 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.
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 approve the quality of its learning solutions.
Venue & other info
All our training courses are organised at one of the recognised professional training facilities or training facilities at one of the 4 to 5 star hotels in the city. We will send you the joining instructions with venue details at least 2 weeks before the commencement of the training program. We provide tea/coffee, snacks and lunch during the duration of this course. You are responsible to organise your accommodation.
Changes to the conference:
Shasat may at its sole discretion change the format, speakers, participants, content, venue location and programme or any other aspect of the Conference at any time and for any reason, whether or not due to a Force Majeure Event, in each case without liability.
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- Present your expertise to a targeted group of industry leaders.
- Exhibit your products to new prospective clients already attending this conference.
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In order to enrol 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 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.
We offer a group discount of 15% if you book a course for 4 or more people. 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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