Description: Actuaries are accustomed to considering how much conservatism is appropriate in their estimates, whether made for pricing or for mea- surement of liabilities. In the proposals for a new standard on accounting for insurance contracts, this conservatism is referred to by the International Accounting Standards Board IASB and the Financial Accounting Standard Board FASB of the United States as the risk adjustment.

Description: Feature article discussing the adoption of IFRS by most countries. Emphasis is placed on the number of accounting and actuarial organizations that have a say in the development of the rules and standards for IFRS.

Description: This session will have two sections: General consideration of IFRS17 implementation for VA writers and reinsurers A case study of IFRS17 implementation for a reinsurer The first section will go over VFA and GM approaches that are available for VA writers. Both approaches have their own challenges. We will highlight some of the challenges and how to approach/overcome them. Additionally, we will discuss how hedging/ALM can help smooth the transition. The second section will go over the details of implementation process of a VA reinsurer. The case study will explore valuation challenges unique to reinsurers assuming business that would otherwise be valued under the VFA. It will also go over some of the modeling difficulties, project management, and database requirement.

Description: Market consistent valuations require path-dependent discounting for scenarios. IFRS 17's requirement to discount best-estimate cashflows using locked-in rates could give non-sensical results in many instances. This article describes a technique for calibrating each of the scenario's cashflows so that they can be discounted with other discount factors or curves without distorting the value of underlying options and guarantees.

Description: Feature article discussing the latest actions of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB).

Description: Update on IASB Activities during the last quarter of 2016.

Description: Presenters examine some of the difficulties created by the absence of worldwide generally accepted accounting principles. Topics covered: 1. The need for worldwide Generally Accepted Accounting Principles, accounting, and reserving standards. 2. The work being done by the International Accounting Standards committee and the International Organization of Securities Commissions.

Description: The article “IFRS 17, Economic Volatility, and Reinsurance” (IFRS 17, Economic Volatility, and Reinsurance | SOA) was designated the best article published in Reinsurance News in 2022. It looks at providing industry insights on preparing for the new global accounting standard. The article was submitted by Paul Sauvé (RGA) and it appeared in the June 2022 issue.

Description: This article lays conceptual foundations associated with projecting investment-related discretionary elements of various life insurance and annuity products. It outlines potential implementation approaches that may be appropriate when calculations are performed in a risk-neutral setting. The article concludes that crediting rates in risk-neutral models can be projected as in real-world models, except that the modeled provision for expected credit losses should be modified to equal real-world expected losses initially, but over the projection reflect management’s evolving expectation, moving ultimately to risk neutral expected losses.

Description: Pandemic impact on continuing education. Financial Reporting Section and Community Engagement. US GAAP textbook update for LDTI. IFRI textbook update for amendments.