IFRS 17 Insurance Contracts
Category: Accounting, Consolidation, IFRS, Insurance
Duration: 5 Days
Related courses : IFRS 9
Synopsis
Learning Objectives
Training Program
Who Should Attend This Training
Prerequisities
This comprehensive five-day training program on IFRS 17 provides participants with an in-depth understanding of the new standard for insurance contracts. IFRS 17 replaces IFRS 4 and introduces significant changes in how insurance contracts are accounted for and valued. This course will cover the key concepts, methodologies, and impacts of IFRS 17, enabling participants to grasp the complexities of the standard, from contract classification to financial reporting. Practical exercises and case studies will reinforce the learning process, ensuring participants are well-equipped to apply IFRS 17 in their respective organizations.
Understand the key principles and objectives of IFRS 17.
Analyze the transition from IFRS 4 to IFRS 17 and its implications.
Classify and segregate insurance contracts according to IFRS 17.
Apply methods for valuing insurance contracts under IFRS 17.
Prepare and interpret the new financial statements for insurers under IFRS 17.
Implement IFRS 17 in financial reporting and assess its impact on business performance.
Day 1: Introduction to IFRS 17 and Key Concepts
Overview of IFRS 17
Transition from IFRS 4 to IFRS 17: rationale, scope, and objectives.Understanding Insurance Contracts
Definition and classification of insurance contracts under IFRS 17.Key Concepts in IFRS 17
Contractual Service Margin (CSM), Risk Adjustment (RA), Best Estimate (BE), and Fulfilment Cash Flows (FCF).Practical Case Study:
Segregate insurance contracts and calculate the CSM for different types of contracts.
Day 2: Methods for Valuation of Insurance Contracts
The General Measurement Model (Building Block Approach)
Components and application of the Building Block Approach (BBA) for valuing insurance contracts.Premium Allocation Approach (PAA)
Simplified method for short-duration contracts, including examples and application.Variable Fee Approach (VFA)
Specialized method for participating contracts, with illustrations and use cases.Practical Exercise:
Valuate insurance liabilities using the BBA, PAA, and VFA models for different contract types.
Day 3: Financial Reporting under IFRS 17
New Financial Statements for Insurers
Presentation of the new balance sheet, income statement, and disclosures under IFRS 17.Impact of IFRS 17 on Financial Performance
How IFRS 17 affects profit recognition, revenue, and key performance indicators for insurers.Case Study:
Prepare and interpret financial statements of an insurance company under IFRS 17.
Day 4: Transition to IFRS 17 and Practical Implementation
Transitioning from IFRS 4 to IFRS 17
Key considerations, options, and challenges in the transition process.Practical Challenges in Implementing IFRS 17
Systems, data, and operational changes required for compliance.Practical Workshop:
Develop a transition plan for an insurance company moving from IFRS 4 to IFRS 17.
Day 5: Case Study and Real-Life Application
Comprehensive Case Study
Apply IFRS 17 concepts to calculate the Best Estimate, FCF, CSM, and RA for a real-life insurance contract scenario.Analysis of IFRS 17 Financial Statements
Analyze published IFRS 17 financial statements from a European insurer and discuss key takeaways.Group Presentation:
Present findings and recommendations for a company adopting IFRS 17, highlighting financial and operational impacts.
Finance and accounting professionals in the insurance sector.
Actuaries and financial analysts dealing with insurance contracts.
Managers responsible for implementing IFRS 17 in their organizations.
Professionals in financial reporting and regulatory compliance.
Basic knowledge of insurance accounting and financial reporting.
Experience with IFRS 4 or financial reporting in the insurance industry is helpful but not required.