The video by Su Su, a Managing Life Actuary, provides a detailed comparison between IFRS 17 and LDTI, highlighting the significant changes in accounting for the insurance industry. It explains the key differences in measurement, such as the valuation method, expense inclusion, risk adjustments, and discount rates. The video also discusses the impact of these differences on liabilities and earnings emergence, using a term insurance example to illustrate the potential effects. Additionally, it covers the level of aggregation required under each and the new disclosure requirements aimed at increasing transparency for users of financial statements. The overarching goal is to help users understand the improvements under both and the challenges in comparing performance between companies reporting under IFRS 17 and those under LDTI.
Contributors: Su Su, FSA, MAAA; Darryl Wagner, FSA, MAAA; Weiling Lao, FSA, MAAA; Jon Forster ASA, MAAA