IFRS 17 for Insurers Implementation and Reporting Training Course

Course Introduction / Overview:

The introduction 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 IFRS 4, introducing a consistent, principle-based accounting model for all insurance contracts. Navigating this complex transition requires a deep and practical understanding of the new requirements for measurement, presentation, and disclosure. This comprehensive course offered by BIG BEN Training Center is designed to demystify IFRS 17 from A to Z, providing a clear roadmap for successful implementation and compliant financial reporting. We will explore the core principles and intricate details of the standard, drawing on insights from leading experts and publications like "IFRS 17 for Insurers" by renowned author Francesco Nagari. Participants will move beyond theory to grasp the practical implications for their systems, processes, and people. This program equips professionals with the essential knowledge and skills to manage the challenges of IFRS 17 adoption, ensuring their organizations can not only comply with the new regulations but also leverage them for improved financial transparency and strategic decision-making. The course is structured to build confidence in applying the standard effectively.

Target Audience / This training course is suitable for:

• Financial Controllers and Directors.
• Chief Financial Officers (CFOs).
• Actuaries and Actuarial Managers.
• Finance Managers and Accountants.
• Internal and External Auditors.
• Risk Management Professionals.
• IT Professionals involved in financial systems.
• Financial Analysts and Investment Professionals.
• Regulatory and Compliance Officers.
• Project Managers for IFRS 17 implementation.

Target Sectors and Industries:

• Life Insurance Companies.
• Non-Life (General) Insurance Companies.
• Reinsurance Companies.
• Health Insurance Providers.
• Financial Services and Banking Institutions with insurance arms.
• Consulting and Professional Services Firms.
• Governmental regulatory bodies and supervisory agencies.
• Software and Technology Providers for the insurance industry.

Target Organizations Departments:

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

Course Offerings:

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

• Explain the fundamental principles and scope of IFRS 17.
• Differentiate between the General Measurement Model (GMM), the Premium Allocation Approach (PAA), and the Variable Fee Approach (VFA).
• Calculate the Contractual Service Margin (CSM) and understand its amortization.
• Assess and quantify the risk adjustment for non-financial risk.
• Apply the correct accounting treatment for reinsurance contracts held.
• Prepare financial statements in compliance with IFRS 17 presentation and disclosure requirements.
• Develop a practical roadmap for the transition from IFRS 4 to IFRS 17.
• Analyze the impact of IFRS 17 on key performance indicators (KPIs) and business strategy.
• Identify the data, system, and process requirements for successful IFRS 17 implementation.
• Evaluate the interaction of IFRS 17 with other standards like IFRS 9.

Course Methodology:

The training methodology at BIG BEN Training Center is designed to be highly interactive, practical, and engaging, ensuring participants can translate theoretical knowledge into real-world application. We move beyond traditional lectures to create a dynamic learning environment that fosters deep understanding and skill development. The program heavily relies on real-world case studies from the insurance industry, allowing participants to work through the complexities of IFRS 17 implementation in a controlled setting. Interactive sessions, group discussions, and practical exercises are integrated throughout the five days to encourage collaborative problem-solving and the sharing of diverse perspectives. Our expert instructors facilitate these activities, providing personalized feedback and guiding participants through technical challenges. The course will also feature workshops on data modeling and system architecture considerations. This hands-on approach ensures that attendees not only learn the rules of IFRS 17 but also understand how to apply them within their own organizational context, making the learning experience both effective and immediately applicable to their professional roles.

Course Agenda (Course Units):

Unit One: Foundations of IFRS 17 for Insurance Contracts

• Introduction to the new era of insurance accounting.
• Key objectives and principles of IFRS 17.
• Scope of IFRS 17 and definition of an insurance contract.
• Comparison of IFRS 17 with the previous standard, IFRS 4.
• Understanding the level of aggregation and contract boundaries.
• Identifying components of an insurance contract.
• Initial recognition and derecognition principles.

Unit Two: The IFRS 17 Measurement Models in Detail

• The default model, the General Measurement Model (GMM).
• Building blocks of the GMM, fulfillment cash flows and the CSM.
• Eligibility and application of the Premium Allocation Approach (PAA).
• Measurement of the liability for remaining coverage under PAA.
• The Variable Fee Approach (VFA) for contracts with direct participation features.
• Choosing the appropriate measurement model for different contract types.
• Practical examples and calculations for each model.

Unit Three: CSM, Risk Adjustment, and Reinsurance Contracts

• Deep dive into the Contractual Service Margin (CSM).
• Initial measurement and subsequent amortization of the CSM.
• Treatment of onerous contracts and subsequent recovery.
• Concept and purpose of the risk adjustment for non-financial risk.
• Different techniques for estimating the risk adjustment.
• Accounting for reinsurance contracts held under IFRS 17.
• Measurement of reinsurance cash flows and the impact on CSM.

Unit Four: Financial Statement Presentation and Disclosure

• Presentation requirements for the statement of financial position.
• Presentation of insurance revenue and expenses in the statement of financial performance.
• Analysis of insurance finance income or expenses.
• Comprehensive disclosure requirements under IFRS 17.
• Quantitative and qualitative disclosure objectives.
• Reconciliation of insurance contract liabilities.
• Preparing for new stakeholder and investor communications.

Unit Five: Transition, Implementation, and Practical Challenges

• Detailed overview of the transition approaches, full retrospective and modified retrospective.
• Understanding the fair value approach for transition.
• Developing a practical IFRS 17 implementation project plan.
• Addressing key data, systems, and process challenges.
• The role of actuaries, accountants, and IT in implementation.
• Interaction of IFRS 17 with other standards, including IFRS 9.
• Future outlook, emerging issues, and managing post-implementation activities.

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 metrics from 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 many programs provide a theoretical overview, our curriculum is built around real-world case studies and implementation scenarios that mirror the challenges professionals face in the insurance industry. We bridge the critical gap between accounting theory and operational reality, ensuring participants understand the impact of IFRS 17 on data, systems, actuarial processes, and key performance indicators. The course content is continuously updated to reflect the latest industry interpretations and best practices, providing insights that are both current and forward-looking. Our instructors are seasoned professionals with direct experience in leading IFRS 17 transition projects, offering unparalleled expertise and practical guidance. The interactive methodology, with a strong emphasis on workshops and peer-to-peer discussion, creates a collaborative learning environment where complex problems are solved collectively, providing a much richer and more memorable educational experience than standard lecture-based courses.