Equivalent Confidence Level for the IFRS 17 Risk Adjustment

This whitepaper is the third in a series that introduces various features of the IFRS 17 risk adjustment that you should consider before implementation. It does address all the challenges in choosing and implementing a calculation methodology, but focuses on the specific issues around calculating an equivalent confidence level for the IFRS 17 risk adjustment when using a method other than Value-at-Risk (VaR).

Using a simple case study, the whitepaper illustrates the potential impact of different translation methods on the disclosed equivalent IFRS 17 risk adjustment confidence level.

Method 1 – Assumed distribution for Present Value of Future Cash Flows (PVCFs).

Method 2 – Assumed distribution for non-financial risk.

Factors to consider when choosing a risk adjustment and translation methodology.

Read Equivalent Confidence Level for the IFRS 17 Risk Adjustment to learn more.