The Moody’s Analytics suite of software solutions, models, content, and services helps support the new requirements of IFRS 17 Insurance Contracts.
On May 18, 2017, the International Accounting Standards Board (IASB) published the final draft of the International Financial Reporting Standard (IFRS) 17 Insurance Contracts accounting standard, along with several supporting documents with guidance and illustration. This new accounting framework impacts the insurance industry around the world and becomes effective for the 2021 reporting year.
The standard applies a principles-based approach which requires interpretation, and practices will likely evolve differently in different markets. Insurers transitioning to IFRS 17 face significant challenges during its implementation. Primarily an accounting-driven standard, IFRS 17 will require greater integration of actuarial and accounting systems, creating significant operational challenges related to data, processes, modeling, governance, and auditability.
Moody’s Analytics is helping insurers to meet these requirements with existing and new functionalities from our models, tools, and software.
Integrate Models, Data, and Actuarial Expertise into Powerful IFRS 17 Solutions
IFRS 17 introduces significant changes into the financial accounting process. Moody’s Analytics data, models, and tools support market-consistent valuation of liabilities, as required by the new IFRS 17 standard. Our suite of actuarial, data, and modeling solutions also addresses the data and process governance challenges introduced with IFRS 17.
Our solutions reduce the need for manual processes and ensure that calculations are carried out in a controlled environment with auditability, reporting, and archiving capabilities. Improving automation, governance, and controls over the IFRS 17 process reduces production time and helps managers and auditors feel confident about the results.
Produce IFRS 17 Calculations
Among the new requirements and depending on which accounting model applies, IFRS 17 introduces the need for insurers to generate new revenue recognition profiles, new balance sheets, and revenue items using several new or revised calculations, including:
Moody’s Analytics provides a comprehensive set of actuarial solutions that can process the various calculations required under IFRS 17. Our modular solutions facilitate insurers’ efforts to address IFRS 17 requirements while integrating with existing systems.
Trevor is a Fellow of the Society of Actuaries, the American Academy of Actuaries, and the Canadian Institute of Actuaries. He has more than 40 years of experience in life insurance, life reinsurance, and actuarial consulting in Canada and the US. Since 1994, Trevor has worked in different roles at GGY and Moody’s Analytics. His expertise spans across multiple domains including the actuarial, finance, and risk management functions. Over the years, Trevor has been closely monitoring the development of IFRS 4 Phase 2 and more recently IFRS 17, working with Canadian associations and helping our clients with IFRS 17 implementation.
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