Description: This article is an update, as of September 2019, on projects in process and those recently completed.

Description: This article highlights some key implications for onerous contracts under IFRS 17.

Description: The article shared results from a survey conducted in May of best-estimate VA assumptions as of year-end 2018. Specifically, the discussion focused on lapse, utilization and separate account return assumptions. The results show that a considerable range of practice across assumptions used by the industry for variable annuities. There is a propensity to use complex assumptions to better match the underlying complexity in the products with the behavior expected from policyholders in a dynamic and volatile economic environment.

Description: This article is an update, as of March 2019, on Financial Reporting Section sponsored projects in process and those recently completed.

Description: Feature article describing the status of research reports relevant to Financial Reporting Section members.

Description: Risk adjustment is needed under IFRS 17 to reflect the compensation that a company requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk. Companies are also required to disclose the method and confidence level used for the calculation of the RA. However, IFRS 17 doesn’t specify a method and a confidence level, nor does it provide a list of specific risks that are considered to be non-financial risk. Companies need to define them based on their own preferences or existing practices. This article will introduce available approaches and discuss the confidence level approach with potential consideration stemming from industry preferences and illustrative examples.

Description: This is an update, as of July 2020, on projects in process and those recently completed sponsored by the Financial Reporting Section.

Description: The author discusses the various components that may have an effect on the future of mortality such as the extinction of numerous species of flora and fauna the growth of agribusiness genetically modified foods, better public health institutions and programs, etc.

Description: A critical step in valuing a company for the purpose of financial reporting is the computation of the market value of economic surplus (MVES). This article provides a novel approach to the valuation of MVES that is stable and reasonably immune to “market noise.” Current approaches to the calculation of economic surplus of an insurance company generally define such surplus as the market value of the assets (MVA) supporting the liabilities less the market value of liabilities (MVL). While MVA is observable in the market, MVL is typically computed directly, without regard to the underlying supporting assets. Subtracting MVL from any value of assets that changes with market movements results in an unstable surplus. Consequently, a surplus that is not fully reflective of market sentiment has been rejected by many. This same approach is further used in the calculation of market consistent embedded value (MCEV) when a balance sheet approach is used .

Description: The article provides an update on the 2019 ERM Symposium with regard to date, location and content (General Sessions and Concurrent Sessions).