Investor Presentaiton
Accounting policies and methodology: many insurers opted to leverage regulatory frameworks
and manage the impact on transition to reduce profit volatility
Solvency II (SII)
framework
European groups have
indicated their intent to
leverage the SIl framework
to determine the IFRS 17
liabilities, utilizing similar
assumptions or calculation
methods as much as
possible.
Premium Allocation
Approach (PAA)
For most of the players, the
use of the PAA for a
majority of their P&C
business will reduce the
impact of the transition to
IFRS 17.
Bottom-up
approach
Many of the insurers in the
panel use the bottom-up
approach to set the IFRS
17 discount curves,
including an illiquidity
premium. Annuity writers
reported the use of the top-
down approach. Disclosures
of these curves will enable
users of the financial
statements to compare
reported results.
OCI approach
Continental European
insurers have generally
opted for the OCl approach
to account for the impact
on insurance liabilities
caused by changes in
economic assumptions in
order to reduce P&L
volatility.
Others have selected the
P&L approach with financial
assets and even then also
classified as FVPL under
IFRS 9.
Retrospective
approach
Many insurers reported
using the retrospective
approach to transition
(either full or modified
retrospective) for most of
their business. The fair
value approach has often
been used for older or less
significant groups of
insurance contracts.
6
Market updates on impact of IFRS 17 and IFRS 9
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