IFRS 17 requires insurers to set appropriate discount rates for liabilities. Whilst IFRS 17 sets out broad principles, there are many techniques and methods that could be used to set suitable rates. The working party will consider the different ways discount rate mechanisms might operate, how actuaries may set up an appropriate framework, and draw attention to some of the advantages and disadvantages that might be encountered in practice.
- Compile and review current literature in the life insurance arenas to ensure access to up to date information.
- Consider the pros and cons of different methods for setting discount rates.
- Provoke thought leadership and innovation within the industry through presentations and forums to gain wider input.
- Presentations at conferences
- A range of articles (see below)
Articles in The Actuary, other publications and in other forums.
Articles published to date include:
- Summary of the Draft Educational Note on Discount Rates Issued by the Canadian Institute of Actuaries, by Jon Neale
- Index-linked liabilities under IFRS 17 – considerations, by Darren Clay and Richard Schneider
- Imperfect numbers under IFRS 17 by Kunj Behari Maheshwari & Brian Ring
- Setting ‘bottom-up’ discount rates under IFRS 17 for General Insurers, by Charlotte Edwards and Apostolos Papachristos
- A summary of the issues the working party is considering
- A balancing act: Companies should not assume their existing discount rate approaches will comply with IFRS 17, warns Daryl Boxall
- IFRS 17 Discount Rate Considerations, by Darren Clay & James Latto
- Locked-in stochastic discount rates under IFRS 17, by Richard Schneider
- Case study on the top-down approach, by Apostolos Papachristos
You might also like
If you want more information about this research working party please contact the Communities Team.
Filter or search events
This year's GIRO has been re-designed as a virtual conference to offer members and non-members the opportunity to get up to date content from leading experts in the general insurance field via online webinars. All sessions will be recorded and made available to purchase and re-watch post-event on the IFoA's GI Online Learning Resource area.
This webinar will provide an update on the emerging thinking around future regulation of DB schemes:
The webinar will discuss the challenges and opportunities schemes face in evaluating end game options, choosing a target state and understanding the impact this strategic decision could have on member outcomes long after the “end state” is reached. Adolfo, Kevin and Rhian bring over 60 years of experience in the industry and a variety of perspectives as scheme actuary, covenant adviser, trustee, de-risking adviser and insurer.
Retail banking is going through a period of substantial change as it moves into the digital age. Banks have large amounts of data about their customers and about their risks. Open data application programming interface (APIs) and data science are enabling banks to use their data to offer innovative and sometimes personalised services. Data science is also adding value in risk areas such as fraud detection and cyber security. At the same time, the move to online banking is making it easier for firms including fintechs to enter banking without having to establish branch networks.
Cash-flow driven investing is a game-changer for DB pension funds navigating their end-game. Suitable for sponsors who want to reduce risks on their balance sheets. And for trustees, it shifts the focus to providing greater certainty of returns, managing funding level volatility and ensuring they have enough income to pay cash-flow requirements.
Patrick Kennedy, Partner at Gateley Legal and Founding Director of Entrust (a leading professional pensions trustee company), will be delivering an update on the latest legal developments during the course of 2020. With both a pensions legal perspective and over 25 years of trustee service, Patrick will seek to highlight how the letter of the law has continued to evolve against the backdrop of a difficult and challenging year
The talk will provide an understanding of the priorities and relationships between deficit reduction contributions, in the context of wider scheme funding, and different types of value outflow from the employer based on the working party’s recently published report.
Covid-19 has required an urgent and cross-practice initiative to facilitate the extensive impact this pandemic has across all industries. IFoA members have been keen to contribute in a different way, so we developed the IFoA Covid-19 Action Taskforce [ICAT] to coordinate our effort, with a more efficient governance.
We have over 500 volunteers and countless topics which we have amalgamated into 93 workstreams.