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IFRS17

Outline

IFRS17 is an International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB) providing guidance for the accounting of insurance contracts. IFRS17 objective is to deliver the first comprehensive and internationally consistent IFRS on accounting for insurance contracts. This new accounting model is based on a transparent approach that uses current measures and accounts for profit as insurers fulfill their obligations towards their policyholders and to make audience of the insurance contract to readily understand the insurance contracts.

Korea has decided to introduce IFRS in 2006 and has been amending its legislations. IFRS was officially introduced for listed companies and financial corporates in 2011. IFRS17 is still to be decided on January 1, 2021 and the Korean insurers have been working to be prepared.

Scope of Business

Since 2009, R&A has been working with British and foreign actuarial specialists on research activities and has developed plentiful and diverse knowledge and know-how on IFRS17. Based on this effort, R&A became the first company that started IFRS4 Phase II implementation project (Hanwha Life Insurance Company June, 2016 ~) and leading the IFRS17 consulting industry.

  • 01 IFRS17 combined model implementation for consistently measure insurance liabilities including product pricing, EV, LAT, ALM, etc.
  • 02 IFRS17 Best Estimate Liabilities (BEL), Contract Service Margin (CSM), Risk Adjustment (RA), etc. measurement
  • 03 IFRS17 defining detailed requirements for Balance Sheet and Profit and Loss statement reporting
  • 04 ISP and variable annuity guaranteed options pricing and measurement
  • 05 Insurance loan and policyholder behavior modelling
  • 06 Detailed modeling by risk rates or policy numbers
  • 07 Direct or indirect pricing expenses classification and liability model implementation