Description: 2021 Life Meeting - Session 7F: A New Frontier for Reinsurance Accounting - LDTI vs. IFRS 17 9.1.21 Recording

Description: IFRS 17 will be effective as of 1 Jan 2023 and provide opportunities as well as challenges to both Direct Writers and Reinsurers across the insurance industry. If the new framework is not fully understood, an implementation can elevate the risk of problems in financial reporting, product development, investment management and more. The transition to IFRS provides an opportunity for companies to optimize the financial position of the enterprise by implementing mitigating strategies to reduce the risks and challenges that IFRS brings to the table.

Description: With Chapter 20 of the National Association of Insurance Commissioners Valuation Manual (VM-20), the expansion of accelerated underwriting programs and digital distribution, new accounting standards under GAAP long-duration targeted improvements (LDTI) and International Financial Reporting Standard (IFRS) 17, along with a changing interest rate environment, companies may be looking for efficient reinsurance solutions to help address these ever changing and varied challenges. Hear highlights on how reinsurance can be utilized to address the challenges associated with managing new business strain and product competitiveness, earnings and risk management, and capital allocation efficiency. At the conclusion of the session, you will understand the various challenges being faced by direct writing companies today and where reinsurance can be leveraged to improve the returns and competitiveness of product offerings, provide flexibility in capital and tax planning, as well as balancing risk appetite and underwriting profit retention.

Description: With recent and continuing changes in regulatory requirements under VM-20, new accounting standards under GAAP LDTI/IFRS 17, expansion of accelerated underwriting programs and digital distribution, and the impact of COVID-19, the needs and challenges being faced by life insurance companies are greater and more varied than ever. Both under favorable and stressed conditions, companies heavily rely on reinsurance and the market has seen several major transactions enacted in this space over recent months. Reinsurance offers a wider variety of opportunities for companies to manage their balance sheets and increase their return on capital. Find out how reinsurance can be utilized to address the challenges associated with earnings growth and volatility, risk management, capital allocation efficiency, and product performance optimization. Moreover, upon enacting a transaction, ensuring the implementation of effective reinsurance operations is crucial to avoid operational inefficiencies and monitor the transaction's performance. Understanding the potential opportunities and common pitfalls in the reinsurance processes is vital for capturing the full value of reinsurance. By attending the session, you will be able to understand the various challenges being faced by direct writing companies today and where reinsurance can be leveraged to improve capital and tax position, as well as achieving the optimal balance of risk appetite and underwriting profit. Additionally, the presentation will provide real life case studies on how innovation and operational excellence can improve earnings by reducing costs related to inefficiencies, reducing process timing, improving controls, and reducing reinsurance leakage.