Looking at the challenges insurers should be preparing themselves for, ahead of the implementation of new IFRS
While there are many similarities between the new IFRS Insurance and Solvency II frameworks, the goals of Solvency II and IFRS are actually quite different. The former focuses on shareholders’ interests while the latter is designed to protect policyholders. Although both frameworks use a common valuation for insurance liabilities (the “building block approach”) their opposite goals produce a number of detailed differences that are not easy to manage. Solvency II systems cannot deal with these differences and additional system work is necessary.
Residual margin – the IFRS Insurance deferred profit
Looking at the challenges insurers should be preparing themselves for, ahead of the implementation of new IFRS
While there are many similarities between the new IFRS Insurance and Solvency II frameworks, the goals of Solvency II and IFRS are actually quite different. The former focuses on shareholders’ interests while the latter is designed to protect policyholders. Although both frameworks use a common valuation for insurance liabilities (the “building block approach”) their opposite goals produce a number of detailed differences that are not easy to manage. Solvency II systems cannot deal with these differences and additional system work is necessary.
Risk Margin - Diversification Benefits
Different computation requirements between portfolios reported in subsidiaries and at a group level will also add data layers for both Solvency II and IFRS 17 calculations
Risk Margin - Computation Techniques and Parameters
Looking at the challenges insurers should be preparing themselves for, ahead of the implementation of new IFRS.
While there are many similarities between the new IFRS Insurance and Solvency II frameworks, the goals of Solvency II and IFRS are actually quite different. The former focuses on shareholders’ interests while the latter is designed to protect policyholders. Although both frameworks use a common valuation for insurance liabilities (the “building block approach”) their opposite goals produce a number of detailed differences that are not easy to manage. Solvency II systems cannot deal with these differences and additional system work is necessary.
Discount Rate
Best Estimate Cash Flows