Front Matter Page
Monetary Capital Markets Department
Contents
Abstract
Glossary
Executive Summary
I. Introduction
II. IFRS 17 Development and Changes Compared to IFRS 4
III. Overview of Accounting Approaches and Intersections with Prudential Frameworks
IV. Potential Impact on Insurers
V. Implementation Challenges
VI. Use of IFRS 17 for Prudential Frameworks
VII. Regulatory and Supervisory Implications
VIII. Concluding Remarks
IX. References
Tables
1. Key Enhancements of IFRS 17 compared to IFRS 4
2. Key Differences Between Accounting and Prudential Standards
3. Reasons Reported for Maintaining Existing Valuation Requirements
4. Potential Changes to Regulatory Requirements
5. Examples of New Indicators or Indicators Modified by Revised Inputs from IFRS 17 Reporting
6. Comparison of Key Features of the U.S. GAAP Targeted Improvements for Long Duration Contracts with the Requirements of IFRS 17
7. Regulatory Approaches on the Use of Accounting Standards for Prudential Purposes
8. Regulatory Approaches on the Use of Accounting Standards for Prudential Purposes
Figures
1. Applicability of IFRS for Public Financial Reporting and Prudential Solvency Reporting
2. Objectives of Accounting and Regulatory Standards
3. Components of Accounting and Regulatory Balance Sheet
4. Illustrative Example of Different Insolvency Signals from Different Balance Sheets
5. Potential Impact of IFRS 17 on Business Areas—Proportion that Selected the Top Four
Boxes
1. IFRS 17 and Non-life Insurers—Impact Likely to be Less Significant
Appendices
I. List of Supervisors That Participated in Survey and Abbreviations
II. Comparison of the U.S. GAAP Targeted Improvements (ASU 2018–12) with IFRS 17
III. Differences Between IFRS 17 and IFRS 4
IV. Transposition Approaches of IFRS Into Local Standards
V. Regulatory Approaches on the Use of Accounting Standards for Prudential Purposes
Glossary
| CSM |
Contractual Service Margin |
| ERM |
Enterprise Risk Management |
| EU |
European Union |
| FASB |
Financial Accounting Standards Board |
| GAAP |
Generally Accepted Accounting Principles |
| GMM |
General Measurement Model |
| IASB |
International Accounting Standards Board |
| IFRS |
International Financial Reporting Standard |
| IT |
Information Technology |
| LIC |
Liability for Incurred Claims |
| LRC |
Liability for Remaining Coverage |
| MCR |
Minimum Capital Requirement |
| NAIC |
National Association of Insurance Commissioners |
| PAA |
Premium Allocation Approach |
| SAP |
Statutory Accounting Principles |