5th Edition IFRS 17 Forum 2020

8:00 Registration and breakfast

8:50 Chair’s opening remarks

TRANSITION & IMPLEMENTATION – PANEL DISCUSSION
9:00 Reviewing the final standard requirements and integration with systems for effective implementation

• Establishing principles around practicality
• Reviewing status of integration of new actuarial system with current systems
• Managing time pressure leading to portfolio shortcuts vs full implementation
• Operational risk of portfolios at different stages of implementation
• Analysing final standard with industry expectations
  • Clarity of perception of wording
• Benchmarking difference in IFRS and US GAAP
• Validating parallel runs across product

Oscar Kitasoboka, Chief Actuary, UAE Insurance Authority
Stephen Bishop, Business Project Manager – IFRS 17 Reinsurance, Munich Re

TIMELINES
9:45 Understanding the impact of delays to final IFRS 17 implementation: benefits and consequences across institutions

• Manging regulatory expectations with potential budget reductions
• Early implementation vs extension of the project by another year
• Procuring funds to finance extension on the project
• Management of operational readiness with timeline uncertainly
• Delayed EU decision: knock-on effect in other jurisdictions

10:25 Morning refreshment break & networking

ENDORSEMENT PROCESS
10:55 Managing complexity of the endorsement process and considerations for global institutions with impact of Brexit

• Reviewing endorsement advice from the commission
  • Meeting the technical criteria
• Managing expected timeline of endorsement with uncertainty
• Brexit: UK submitting own endorsement outside EU
• Reviewing early interaction of the timing of the EU endorsement decision

Senior Executive, Financial Reporting Council

KEY PERFORMANCE INDICATORS
11:35 Establishing KPIs to manage and understand business performance under IFRS17 reporting

• Reviewing how KPIs are embedded into reporting
• Compatibility of KPIs with elements within the standard
  • E.g. reviewing revenue and insurance expense as one unit or two
  • Reviewing creating additional calculations and discourse
• Corresponding principles with the US GAPP standards
• Using parallel runs to preview the standard to understand KPIs

Jo Clube, Group Technical Accounting Director, Aviva

12:15 Lunch break and networking

REINSURANCE
1:15 Managing uncertainty and expectations of product treatments for reinsurance and effective treatment under IFRS 17

• Reviewing recovery of losses and underlying interest
• Managing IFRS17 granular reporting
  • Achieving offset on onerous and non-onerous contracts
• Understanding new benefits and potential use of reinsurance
  • Optimising the risk adjustment in the reinsurance
• Assessing the eligibility for the pre-meditation approach
• Managing estimates and use of actuarial resources to calculate expected cash flows

Alexandre Tzenev, Managing Director – Financial Solutions EMEA, SCOR Global Life

CONTRACTUAL SERVICE MARGIN
1:55 Measuring and incorporating contractual service margin and classification of products under IFRS 17

• Reviewing investment return
• Establishing how to measure the earnings over the number years
  • Implementing recognition patterns
  • Including the investment margins versus just a pure insurance margin
• Recognising CSM on the classification of the product
• Measuring and realising relative margins
  • How much and what time
• Treatment of pure investment products under IFRS17

Martin Schmid, Head of IFRS 17, Baloise Insurance Company

DATA – PANEL DISCUSSION
2:35 Reviewing IFRS 17 data requirements to identify data approach and collecting granular level of historical data

• Determining a data approach:
  • Fair value, modified retrospective and fully retrospective
• Acquiring, cleaning and checking the data
• True interpretation of the principles and standard to create internal rules
• Producing and collective usable historical data in the right format
• Reviewing data across subsidiaries and identifying product specific data
• Developing new processes and controls over IFRS 17 data
• Incorporating data in a controlled way into a new software tool

Brian Birch, IFRS 17 Project Manager, Randall & Quilter

3:20 Afternoon refreshment break and networking

SYSTEM DESIGN
3:50 Building and embedding IFRS17 system and modelling requirements to develop effective infrastructure

• Merging actuarial inputs with the accounting inputs
  • Compatibility of different formulas and systems at end calculation
• Costly element of getting system ready
  • Upkeep and updated of systems
• Managing uncertainty of final output with limited historical case studies
• Reviewing how data reacts with different modelling systems
• Gaining an industry consensus on the technical approaches
• Reviewing theoretical requirements and resultant impression

AUDIT
4:30 Aligning audit requirements across the industry for one unified process to ensure comparability across organisations

• Preparation for initial audit of the transition
• Planning for fully retrospective transition and changes to numbers
• Managing different data flows from IFRS4 to IFRS17
• Ensuring Equity Liquidity Adjustment implementation with auditor expectations
• Organisation from audit to produce standard processes
• Alignment across the industry for one unified process
• Automatic document preparation

COMMUNICATION – PANEL DISCUSSION
5:10 Communication and understanding of impacts of IFRS17 on company accounts to internal and external stakeholders

• Explaining potential shifts in numbers to stakeholders and market
• Changes to income statement and premiums included in the future
• Treatment of investment components under IFRS 17
• Changes to calculating profits and recognition period
  • Variations in recognition of profits over time, upfront or at end of contract
• Maintaining relationships with investors and explaining changes
• When should investors be prepared and educated on future numbers?
• Understanding and interpreting results to report to management

Oscar Kitasoboka, Chief Actuary, UAE Insurance Authority
EeLain Ong, CFO, DHL Insurance

5:55 Chair’s closing remarks and end of Forum