(VIRTUAL) IFRS 17 for Reinsurance: How to measure and explain performance

About the Meeting

Valuation of reinsurance contracts held under IFRS 17 is far more sensitive to the subtle nuances in wording that were not considered under IFRS 4.  As the financial impacts of IFRS 17 become better understood, companies need to address the repercussions on their value chain beyond actuarial modelling and financial reporting. This session will share insight how actuaries can identify reinsurance blind spots, measure the impacts on key performance ratios and rating agency models, re-evaluate reinsurance programs and update their risk and capital management response to IFRS 17. 

A brief outline of the agenda is provided below.

1. Understanding how reinsurance Terms & Conditions affect balance sheets, profitability and P&L volatility under IFRS 17

• examples based on real life contract clauses affecting contract boundaries, allocation of ceded premium cost, discount rates, profit sharing and non-distinct investment components

2. How reinsurance buying may evolve under IFRS 17 as a management lever

• risk and capital, dividends, rating agency models, investments and ALM  
• can IFRS 17 impact Solvency II own funds and SCR 

3. How to explain valuation results in a clear and credible business story

The practical examples will explore impacts on cash flow projections, scope of risk transfer, operational cost of production routines, regulatory requirements, and net loss and combined ratios.

The session requires medium level of IFRS 17 proficiency.