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Setting ‘bottom-up’ discount rates under IFRS 17 for General Insurers

The IFRS for GI Insurers working party has, in collaboration with the Discount Rates working party, just released a new paper called “Setting ‘bottom-up’ discount rates under IFRS 17 for General Insurers”. This paper provides an overview of how to determine IFRS 17 discount rates using the bottom-up approach. The paper describes the challenges associated with determining both the risk-free rates plus an allowance for the illiquidity premium. The need to quantify an illiquidity premium is a new concept to the industry; where the paper provides practical implementation suggestions on how this can be approached.  

Read the paper