Advanced IFRS 17 for Insurance Contracts Reporting Training Course

Course Introduction / Overview:

The implementation of IFRS 17 represents the most significant change to insurance accounting in decades, fundamentally altering how insurers report financial performance and position. This standard replaces the interim IFRS 4, introducing a comprehensive and consistent framework for all insurance contracts. Navigating the complexities of the General Measurement Model (GMM), the Premium Allocation Approach (PAA), and the Variable Fee Approach (VFA) requires a deep and practical understanding. This course is designed to provide a complete guide to IFRS 17, from its core principles to the advanced challenges of implementation and disclosure. As discussed by experts like Francesco Nagari in works such as "IFRS 17 for Insurers," the transition demands a multidisciplinary approach, blending actuarial, accounting, and IT expertise. BIG BEN Training Center has developed this program to equip finance and insurance professionals with the necessary skills to manage the transition effectively, ensuring compliance and leveraging the new standard for strategic insights. Participants will gain a robust understanding of key concepts like the Contractual Service Margin (CSM) and risk adjustment, enabling them to lead their organizations through this critical financial reporting transformation.

Target Audience / This training course is suitable for:

• Chief Financial Officers (CFOs) and Finance Directors.
• Financial Controllers and Finance Managers.
• Actuaries and Actuarial Analysts.
• Accountants and Financial Reporting Professionals.
• Risk Management Professionals.
• Internal and External Auditors.
• IT Professionals involved in financial systems.
• Financial Analysts and Investment Professionals.
• Regulatory and Compliance Officers.

Target Sectors and Industries:

• Life Insurance Companies.
• General (Non-Life) Insurance Companies.
• Reinsurance Companies.
• Financial Services and Banking Sector.
• Public Accounting and Auditing Firms.
• Management and Financial Consulting Firms.
• Governmental Regulatory Bodies and Central Banks.
• Software and Technology Providers for the Insurance Sector.

Target Organizations Departments:

• Finance and Accounting Departments.
• Actuarial Departments.
• Risk Management Departments.
• Internal Audit and Compliance Departments.
• Financial Planning and Analysis (FP&A) Departments.
• Information Technology (IT) Departments.
• Investor Relations Departments.

Course Offerings:

By the end of this course, the participants will have able to:

• Interpret the core principles, scope, and objectives of IFRS 17.
• Differentiate between the various measurement models, including GMM, PAA, and VFA.
• Accurately calculate and account for the Contractual Service Margin (CSM).
• Understand the role and calculation of risk adjustment for non-financial risk.
• Apply the correct accounting treatment for reinsurance contracts held.
• Prepare financial statements in compliance with IFRS 17 presentation requirements.
• Develop comprehensive disclosures as mandated by the standard.
• Manage the complexities of the transition from IFRS 4 to IFRS 17.
• Analyze the impact of IFRS 17 on key performance indicators and business strategy.
• Address the practical challenges related to data, systems, and processes for IFRS 17 implementation.

Course Methodology:

The training methodology at BIG BEN Training Center is designed to be highly interactive, practical, and engaging, moving beyond theoretical lectures to ensure deep comprehension and skill acquisition. This course on IFRS 17 utilizes a blended learning approach, combining expert-led presentations with intensive, hands-on workshops and case studies. Participants will work through real-world scenarios drawn from the insurance industry to understand the practical application of IFRS 17 measurement models and disclosure requirements. Group discussions and collaborative problem-solving sessions are integral to the program, allowing participants to share experiences and learn from their peers' implementation challenges. We emphasize a step-by-step approach to complex calculations like the Contractual Service Margin (CSM) and risk adjustment, using practical exercises to solidify understanding. The course fosters a dynamic learning environment where participants are encouraged to ask questions and debate complex topics, ensuring that the training is directly relevant to their professional roles and organizational contexts. Our expert instructors provide continuous feedback and guidance, ensuring every participant can confidently apply their new knowledge.

Course Agenda (Course Units):

Unit One: Foundations and Core Principles of IFRS 17

• Introduction to the new era of insurance accounting.
• Objectives and scope of IFRS 17.
• Key definitions: insurance contract, portfolio, and unit of account.
• Separating components from an insurance contract.
• Comparison of IFRS 17 with the previous standard, IFRS 4.
• Understanding the level of aggregation for insurance contracts.
• Initial recognition and measurement principles.

Unit Two: The General Measurement Model (GMM) in Depth

• Overview of the building block approach.
• Estimating future cash flows (fulfillment cash flows).
• The role and application of discount rates.
• Determining the risk adjustment for non-financial risk.
• Calculating the Contractual Service Margin (CSM) on initial recognition.
• Subsequent measurement and amortization of the CSM.
• Treatment of onerous contracts under the GMM.

Unit Three: Other Measurement Models and Reinsurance

• The Premium Allocation Approach (PAA) eligibility and application.
• Measurement of the liability for remaining coverage under PAA.
• The Variable Fee Approach (VFA) for contracts with direct participation features.
• Accounting for reinsurance contracts held.
• Measurement of reinsurance contracts and the impact on CSM.
• Presentation of reinsurance in financial statements.
• Modifications of insurance and reinsurance contracts.

Unit Four: Financial Statement Presentation and Transition

• Presentation on the Statement of Financial Position.
• Presentation of revenue and expenses on the Statement of Financial Performance.
• Analysis of insurance finance income or expenses.
• Comprehensive disclosure requirements under IFRS 17.
• The three transition approaches: full retrospective, modified retrospective, and fair value.
• Practical challenges and considerations for each transition method.
• Interaction of IFRS 17 with other standards like IFRS 9.

Unit Five: Practical Implementation, Systems, and Advanced Topics

• Developing an IFRS 17 implementation roadmap and project plan.
• Data requirements, process changes, and system architecture.
• The role of actuaries, accountants, and IT in implementation.
• Addressing onerous contract testing and subsequent measurement.
• Impact of IFRS 17 on key performance indicators (KPIs) and business strategy.
• Case studies on IFRS 17 implementation across different insurance sectors.
• The future of insurance reporting and emerging best practices.

FAQ:

Qualifications required for registering to this course?

There are no requirements.

How long is each daily session, and what is the total number of training hours for the course?

This training course spans five days, with daily sessions ranging between 4 to 5 hours, including breaks and interactive activities, bringing the total duration to 20 - 25 training hours.

Something to think about:

Beyond compliance, how can the granular data and new performance metrics generated by IFRS 17 be leveraged to drive strategic business decisions and product innovation in the insurance industry?

What unique qualities does this course offer compared to other courses?

This course distinguishes itself by focusing intensely on the practical application and strategic implications of IFRS 17, rather than merely reciting the standard's technical rules. While other programs may provide a theoretical overview, our curriculum is built around real-world case studies and implementation challenges faced by insurers today. We bridge the critical gap between accounting theory and actuarial practice, ensuring participants understand how actuarial inputs for risk adjustment and cash flow projections directly impact financial statements. The training provides a holistic view of insurance finance transformation, exploring the standard's effect on data infrastructure, systems, business processes, and key performance indicators. Our approach is not about learning to comply, but learning to capitalize. We empower participants with the strategic insights needed to interpret the new financial narratives created by IFRS 17, enabling them to communicate performance effectively to stakeholders and use the standard as a catalyst for improved business management and decision-making. The emphasis is on building sustainable, in-house expertise for long-term success.