2024 ValAct Meeting Virtual - Session 6B: Are Risks and Controls Up to Par Post-implementation of the New Financial Reporting Standards (LDTI, IFRS17)? 9.18.24 Recording

With long-duration targeted improvements (LDTI) and interational finanial reporting standards (IFRS) 17, the insurance industry just underwent the adoption of two of the most significant accounting changes in recent history. While many companies have now successfully completed their implementation projects and have passed their first external audit reviews, they have had to do so under tight deadlines with limited resources. As a consequence, the production teams often lacked the time and resources to take the necessary step back to reflect on the new risks and adapt or set up a new set of controls. In practice, this can put companies in a vulnerable position where many of the new risks are not yet identified and/or fully understood, controls that have been set up lack proper documentation and governance and are performed manually in a spreadsheet creating more risks of errors. Good risk management requires a solid understanding of all of these new risks as well as a proper set of preventive, detective and corrective set of controls. Being able to set up a proper risks and controls analysis can be extremely valuable to insurance companies and can help get to the next stage of understanding and communicating financial results in this new LDTI/IFRS17 world. Learning Objectives: In this session, we will discuss the challenges that companies have with reporting under the new LDTI and IFRS17 requirements, and the risks that it brings to their processes. Furthermore, the presentation will provide real life case studies on how some companies have used internal audit to help stretched valuation and finance teams with identifying new risks, developing more efficient controls and optimizing these processes.