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.
David is a Fellow of the Institute of Actuaries and Associate of the Society of Actuaries. An IFRS 17 subject matter expert. David is currently involved in the interpretation of IFRS 17, working with insurers across the globe on the key aspects of the new standard. David has been with GGY and now Moody’s Analytics since 2004. Prior to joining GGY, he spent 16 years working as an actuary for insurance companies across a number of lines of business and functional roles. David’s experience includes various GAAP reporting frameworks, earnings analysis, long-term care, and other health protection products.
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