Programme overview
Introduction:
IFRS 17 Insurance Contracts changed how insurers measure and report profit, and many finance and actuarial teams still struggle to explain movements in the contractual service margin, reconcile insurance revenue to cash premiums and defend judgements on aggregation, discount rates and risk adjustment. This Core Concept course takes experienced practitioners through the General Measurement Model, Premium Allocation Approach and Variable Fee Approach, reinsurance held, onerous groups, presentation, disclosure and transition. Participants build an IFRS 17 Measurement and Disclosure Workbook covering CSM roll-forwards, liability reconciliations and a judgements register.
Course Objectives:
- Determine IFRS 17 scope, separate non-insurance components and set the level of aggregation into portfolios, annual cohorts and profitability groups
- Measure groups of insurance contracts under the General Measurement Model, including fulfilment cash flows, discounting, risk adjustment for non-financial risk and the contractual service margin
- Assess eligibility for and apply the Premium Allocation Approach and the Variable Fee Approach to the right contract groups
- Account for reinsurance contracts held, onerous groups, loss components and loss-recovery components
- Prepare the insurance service result, insurance finance income or expenses and the reconciliations and judgements disclosures the standard requires
- Evaluate transition approaches and design the data, systems and actuarial-finance controls that sustain a reliable IFRS 17 close
Target Audience:
- Managers responsible for insurance financial reporting and the quarterly and annual IFRS 17 close
- Actuarial valuation managers who produce fulfilment cash flows, risk adjustment and CSM figures
- Reinsurance accounting managers accountable for ceded contracts and recoveries
- Internal and external audit managers who review insurance contract liabilities and disclosures
- Finance transformation and systems managers who own IFRS 17 data flows and calculation engines
- Technical accounting managers in insurance and takaful operators who interpret and document policy choices
Course Outline:
Day 1: IFRS 17 Scope, Contract Boundaries and Level of Aggregation
- IFRS 17 Scope Tests: Insurance Risk Significance and Scope Exclusions
- Separating Embedded Derivatives, Investment Components and Distinct Goods or Services
- Contract Boundary Assessment for Renewals and Repricing Rights
- Level of Aggregation: Portfolios, Annual Cohorts and Profitability Groups
- Current-State Gap Assessment of Policy Data Against IFRS 17 Grouping Needs
Day 2: The General Measurement Model and Contractual Service Margin
- Building Block Approach: Estimates of Future Cash Flows Within the Boundary
- Discount Rates: Bottom-Up and Top-Down Yield Curve Construction
- Risk Adjustment for Non-Financial Risk: Techniques and Confidence Level Disclosure
- Contractual Service Margin at Initial Recognition and Subsequent Measurement
- Coverage Units and CSM Release Pattern Determination
Day 3: Premium Allocation Approach, Variable Fee Approach and Reinsurance Held
- Premium Allocation Approach Eligibility Testing and Liability for Remaining Coverage
- Liability for Incurred Claims Under PAA: Discounting and Risk Adjustment Choices
- Variable Fee Approach for Direct Participating Contracts: Underlying Items and Variable Fee
- Reinsurance Contracts Held: Measurement, Net Cost or Gain and Non-Performance Risk
- Loss-Recovery Component for Reinsurance Held on Onerous Underlying Groups
Day 4: Onerous Contracts, Presentation, Disclosure and Transition
- Onerous Group Identification and Loss Component Allocation
- Insurance Revenue and Insurance Service Expenses in the Statement of Profit or Loss
- Insurance Finance Income or Expenses and the OCI Disaggregation Option
- Required Reconciliations: Liability for Remaining Coverage, Incurred Claims and CSM Movements
- Transition Approaches: Full Retrospective, Modified Retrospective and Fair Value
Day 5: Modelling Build: IFRS 17 Measurement and Disclosure Workbook
- Life Protection Case: GMM Cohort CSM Roll-Forward Build
- Motor and Property Case: PAA Liability and Onerous Test Worksheet
- Actuarial-Finance Data Flow Mapping, Reconciliation Controls and Sub-Ledger Postings
- Judgements Register: Aggregation, Discount Rate, Risk Adjustment and Coverage Unit Choices
- Workbook Walkthrough and Audit Committee Style Results Explanation
Skills You Will Gain:
- Insurance Contract Grouping
- Fulfilment Cash Flow Measurement
- Contractual Service Margin Roll-Forward
- Risk Adjustment Calibration
- Reinsurance Held Accounting
- Onerous Contract Testing
- Insurance Disclosure Reconciliation
- Actuarial-Finance Data Integration
Why Attend This Course:
- Return with an IFRS 17 Measurement and Disclosure Workbook of CSM roll-forwards, liability reconciliations and a judgements register built on realistic cases
- Explain to boards, auditors and analysts why insurance service result and CSM moved between periods
- Close gaps between actuarial and finance teams by mapping who owns each data item, calculation and control
- Test measurement choices on life, motor, property and participating contract cases alongside peers from insurers, takaful operators and audit practices
Conclusion:
IFRS 17 reporting is only as reliable as the grouping decisions, assumptions and data flows behind it. This course moves from scope and aggregation, through the General Measurement Model and contractual service margin, to the Premium Allocation Approach, Variable Fee Approach, reinsurance held, onerous groups, presentation, disclosure and transition. The final day applies these requirements to life, motor and property cases and produces an IFRS 17 Measurement and Disclosure Workbook that participants can adapt to their own portfolios and close process.