IFRS 17 concerns insurance companies that are listed on a stock exchange, or their parent company is. While accounting for insurance contracts has so far been based on the acquisition cost view, as of 2022/2023 it will be changed to the market value view. With this, IFRS 17 is completely changing the world of accounting – also retroactively for the entire calendar year 2022.
IFRS 17 uses different valuation models. The General Measurement Model (GMM) and the Premium Allocation Approach (PAA) can be used for non-life insurance, and the Variable Fee Approach (VFA) for health and life insurance with profit participation. These models can be further customised with dozens of options and management parameters and allow simplifications through non-material approximations. Complexity, data requirements and implementation effort can be minimised through custom-fit parametrisation.
We have experience in the conceptual design and implementation of these models as well as in the construction of the necessary data links, and will navigate the challenges of IFRS 17 with you.
In three workshops over a period of two weeks, we will work with you to develop a structure for the optimal application of IFRS 17 in line with your insurance contracts and the reporting requirements of your company.
Together we will focus on the relevant model characteristics and use permissible approximations and simplifications that IFRS 17 permits for the accounting of your insurance contracts. This will help to minimise the complexity and your implementation effort. However, before the implementation of the project begins, reliable assumptions for the selection of models and parameters must be made and the availability of the necessary data has to be clarified.
In addition to a one-hour final presentation, you will receive four result documents on the following topics:
During three half-day workshops, we will work with you to develop a structure for your financial accounting according to IFRS 17. Whether you ultimately want to use a dedicated IFRS 17 software or an in-house solution or whether you want to carry out the implementation on your own or be supported externally, we will structure the business model decisions, IT architecture and implementation work packages for IFRS 17 together with you during the workshops.
If necessary, we can of course also support you in the implementation, from technical advice to data connection and IT operation. Based on project-proven software components, data models and concepts, we are able to support you from one source.