Under IFRS 17 rules, discount rate curves will be used to determine the value of contract liabilities shown on the balance sheet. These curves will affect present value of fulfillment cash flows, contractual service margins, profit and loss, and other comprehensive income measures, and therefore will set the level of insurance finance expenses. Download this paper now to learn about the permitted approaches for constructing insurance contract discount rates under the IFRS 17 rules.
Significance and use of discount curves in the IFRS 17 reporting process
Top-down and bottom-up techniques used to construct discount curves
Considerations and methodological challenges when applying the yield curve construction method
Potential impact of the curves on financial results