Description: After International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard No. 17 – Insurance Contracts (“IFRS 17”), IASB received much feedback and suggestions for improvement. As a result, in early 2019, IASB made limited changes to IFRS 17. The presentation will briefly discuss the main contents and effects of those changes.

Description: This session will look into life insurers’ anticipated business impacts as a result of the implementation of the new accounting standard for insurance contracts, IFRS 17. What will be the financial impact as of day one as a result of transition? How will embedded value for common life insurance products change? How will costs of reinsurance be affected? Will products have to be re-designed and/or re-priced? IFRS 17 may have more ramifications into the way insurers are doing business than we have anticipated so far. While we are working on the implementation of this new standard, we should not lose sight of the business impacts that will follow. At the conclusion of the session, attendees will be able to: Understand key impacts of the transition to IFRS 17; See illustrative examples of the impact on embedded value; and Understand key impacts on product design and pricing Country Relevance: US and Canada

Description: IFRS 17 is causing insurers to rethink their investment management and ALM strategy. The presenters examine issues arising under IFRS 17 and IFRS 9 and the resulting challenges facing insurers, including the volatility and impact on financial statements. Solutions will be proposed including a discussion on how to deal with the disconnect between economic and accounting results. A case study will present the tradeoffs insurers must consider to optimize their portfolio under IFRS 17.

Description: IFRS 17 is a significant change that requires insurers to invest time and resources. The presenters will address wider implications of the new standard, and a senior leaders' panel will cover a number of perspectives. They will address the latest developments of the standard and interpretations, emerging technology that is accelerating implementation, insights from implementing IFRS 17 in Canada and globally, reinsurance considerations and opportunities for the actuarial profession.

Description: The presenters will describe how the new IFRS 17 requirements will impact the profitability of ULSG products. This could have a significant impact for companies who will be reporting financials based on IFRS 17. The shift from US GAAP to IFRS 17 will likely increase the volatility in IFRS earnings, which may prompt companies to explore potential product changes.

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: Key performance indicators (KPIs) are essential in order to monitor and communicate a life insurance companies’ financial results, and effectively manage the business. This presentation will illustrate how the currently used KPIs may develop and evolve with the adoption and implementation of IFRS 17. Will the IFRS 17 insurance revenue be an appropriate measure for growth? Will the profitability and new business value measures be different? The panelists will discuss the implications of IFRS 17 on the existing KPIs and the possible changes that may lay ahead

Description: Since IFRS17 draft was issued in June 2019, IASB has discussed various important issues, such as the selection of B137 and the judgment to investment components. This session will be focused on the discussion and sharing of these aspects, to help understand the latest developments. At the same time, actuaries played an important role in the implementation of IFRS 17. The speaker will share the important work of actuaries in the implementation and application of IFRS 17 through the observation of the previous implementation process.

Description: The discount rate is one of the most critical topics in IFRS 17 and may have important repercussions on product profitability. The presenters will cover practical implementation considerations, including alternative approaches to illiquidity premium calculation for business supported by fixed assets with credit risks. Other implementation considerations will also be covered, including granularity of setting the discount rate, application to new business, and implications on asset and liability modeling. The presenters will then discuss how discount rates could be utilized in an Economic Scenario Generator (ESG) to assist IFRS17 calculations, particularly for risk-neutral valuation of the time value of options and guarantees.

Description: Since the issuance of IFRS 17 in 2017, the global insurance accounting standard, insurers across the globe have been making huge investment in assessing the impact and implementing the new standard. In late 2018, FASB issued ASU 2018-12 that revises key elements of the U.S. GAAP measurement models and disclosure requirements for long-duration contracts issued by insurers (also called FASB Targeted Improvements). Both standards are becoming effective 1/1/2021 (though IFRS 17 may potentially be deferred by a year). U.S. insurers that have international parents or subsidiaries, and report under a multi-GAAP environment will likely have to adopt both standards. By now most insurers should have nearly completed impact assessment for IFRS 17, designed road map for or have started the implementation journey. With the new U.S. GAAP requirements becoming effective concurrently, it is important to embark on the implementation journey with both standards in mind, and maximize the synergy to achieve cost-saving and design efficiency. This session will briefly introduce the two standards with a conceptual comparison, along with a discussion on where efficiency and synergy can be achieved in a concurrent implementation.