What is IFRS17?

  • IFRS17 is an accounting standard for insurance contracts issued in May 2017.
  • It concerns the liabilities of (re)insurance entities of quoted group companies.
  • The effective date of the accounting standard is 1st January 2022.
  • It concerns the evaluation of the Balance-Sheet and profit or loss in Market Value, as well as the production of many complementary reportings.
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The main difficulties linked to IFRS17 are:

  • To restructure data to respect the level of aggregation of insurance contracts as required by IFRS17,
  • The complexity of the norm,
  • The computation of the different models,
  • Redefining and understanding the result in profit or loss,
  • The important number of disclosure requirements,
  • The huge workload and complexity for the transition management in 2022,
  • To take advantage of all possibilities permitted by the norm in order to nullify most of volatility in Profit or Loss.

 

What Act-unity can do for you:

Support for actuarial department:

  • Controls: validation of the different steps of calculation, consistency of developments with the accounting standard specificities,…
  • Developments: the accounting standard classifies the insurnace contracts into 3 categories that require different calculation methods to obtain their specific financial statements. Our help can consist in:
    • Presenting in details the 3 categories methodology, to help you to gain lots of precious time regarding the accounting standard,
    • Helping you to implement your IFRS17 solution by understanding your needs and developing the calculations,
    • If necessary, helping you to analyse your portfolio to lead to choices of hypothesis.

 

Project management help:

  • Act-unity can help you to have a view on the transition project as a whole:
    • A summary of IFRS17 can be presented to the company and technical aspects can be explored,
    • Act-unity can help you to analyse your business to determine the process.
  • If the project is already started, Act-unity may constitute a reinforcement to face a punctual workload and propose complementary improvements.