The IFoA Life Research Sub-committee formed three working parties in 2018 to analyse different aspects of IFRS 17. One of these working parties was the IFRS 17 CSM Working Party which delivered in line with its stated objectives and presented its work in a sessional paper in October 2020.
During the course of its work, it was evident that a number of IFRS 17 topics will remain open for debate and that will continue to pose challenges to stakeholders. The working party has been relaunched following its brief hiatus with revised terms of reference that would look to cover wider areas of IFRS 17 from a life insurer’s perspective.
Key objectives:
- Identify IFRS 17 implementation challenges faced by life insurers globally other than those covered by existing working parties
- Identifying possible interpretations and approaches to tackling those challenges
- Consider the operational as well as technical implications of the different approaches to ensure that recommendations are proportionate
- Provoke thought leadership and innovation within the industry through presentations at various forums to gain wider input.
Previous objectives:
- Analysing the technical, operational, and financial impacts that arise with respect to the calculation of the CSM at initial recognition and subsequent measurement. These include issues pertaining to:
- contract boundaries
- ‘locked-in’ financial assumptions
- coverage units
- reinsurance contracts held
- loss components
- with-profits funds
- transition
- the impact on management information and relevant KPIs
- In addressing these issues, the working party will also consider existing literature and research material produced by relevant stakeholders (e.g. IASB and TRG; EFRAG; IFoA and other international actuarial associations; ICAEW and other accountancy bodies; consulting and audit firms; regulators and national standard setters)
Key outputs:
- A presentation to Yorkshire Actuarial Society (YAS) on 6 March 2019
- A LinkedIn Article: IFRS 17 Contractual Service Margin (CSM) Working Party, published on 2 March 2019
- A LinkedIn Article: Locked-in assumptions, published on 12 March 2019
- A LinkedIn Article: Transition, published on 18 March 2019
- A LinkedIn Article: Variable Fee Approach, published on 16 April 2019
- A LinkedIn Article: Fair value transition, published on 1 May 2019
- A LinkedIn Article: Adjustments to coverage units, published on 23 May 2019
- A LinkedIn Article: Identification of coverage units, published on 29 May 2019
- A LinkedIn Article: Determining the CSM - operational approaches using prior information, published on 11 June 2019
- A LinkedIn Article: Discounted vs undiscounted coverage units, published on 18 June 2019
- A LinkedIn Article: How to choose the measurement model, published on 17 July 2019
- A LinkedIn Article: Profit profiles under IFRS 4 and IFRS 17, published on 17 July 2019
- A LinkedIn Article: Modified Retrospective Approach, published on 17 July 2019
- A LinkedIn Article: Order of adjustments, published on 19 July 2019
- A LinkedIn Article: Determining the risk adjustment at the group of contracts level, published on 19 July 2019
- A LinkedIn Article: Transition - fair value vs modified retrospective, published on 11 August 2019
- A LinkedIn Article: Loss components_changes in FCF using current or locked in interest rates, published on 11 August 2019
- A LinkedIn Article: Aggregation of reinsurance contracts held, published on 23 September 2019
- A LinkedIn Article: Calculating value at initial recognition, published on 23 September 2019
- A LinkedIn Article: Challenges of proportionate reinsurance contracts held, published on 23 September 2019
- A LinkedIn Article: Discount rates at initial recognition, published on 7 October 2019
- A LinkedIn Article: Reinsurance contracts held - contract boundaries and recognition dates, published on 7 October 2019
- A LinkedIn Article: Reinsurance and the risk mitigation option, published on 23 October 2019
- A LinkedIn Article: Why do loss components need to be amortised, published on 6 November 2019
- A LinkedIn Article: Comparing various loss component amortisation methods, published on 6 November 2019
- A LinkedIn Article: Advanced considers for loss components, published on 6 November 2019
- A LinkedIn Article: Setting consistent assumptions for reinsurance contracts held, published on 6 November 2019
- A LinkedIn Article: IFRS17 Determining contract boundaries under IFRS 17, published on 18 November 2019
- A LinkedIn Article: IFRS 17 Impact on KPIs, Published on 18 December 2019
- A Linkedin Article: IFRS 17 CSM Adjustment for Experience Variances, published on 13 January 2020
- A Linkedin Article: IFRS 17_Estimating future new business for reinsurance contracts held, published on 28 January 2020
- A presentation at the Life Conference in 2019
- An article in The Actuary - June 2020
- Management Information Article in May 2020
- Sessional Meeting and Final Paper: A Life Insurance Perspective Oct 2020
| Chair: | tbc |
|---|---|
| Membership: | 15 |
| Established: |
2018 / relaunched 2021 |
Contact Details
If you want more information about this research working party please contact the Communities Team.
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