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IFRS 17 – Insurance Contract Accounting

November 21 – 23, 2017 – Toronto

IFRS 17, the insurance contracts standard, establishes a global standard for accounting and reporting of insurance contracts. It clearly embodies the IASB’s commitment to an approach that severs the link between insurance assets and liabilities for accounting purposes.

Moving forward, insurers will be compelled to deal with significant new volatility on financial statements. These changes, and the resulting financial statement impact, will have appreciable collateral impact – products may be discontinued, investment strategies will be altered, regulatory capital and required ratios are significantly affected.


IFRS 17 has finally been issued with its substantive and controversial changes to insurance accounting. In addition, ongoing accounting and regulatory developments continue to impact accounting processes and business operations. This timely conference summarizes and provides the most current information available to assist you in dealing this massive new organizational challenge, including:

• IFRS 17 Insurance Contracts – Overview and Interaction With Other IFRS Standards
• Assessing the Operational Impact of IFRS 4, Phase II – Industry Perspectives
• Initial Recognition and Measurement of Insurance Contract Liabilities
• Level of Aggregation in IFRS 17
• Subsequent Measurement Under the General Model
• Variable Fee Approach – Principles and Application
• Working with IFRS 17 – Early Observations from Sun Life Financial
• LICAT and IFRS 17 – Regulatory Capital and Accounting Interaction
• Practical Examples of Applying IFRS 17 – Examining the Impact
• Planning for Transition
• Implementing the Premium Allocation Approach for Short Duration Contracts
• Impact of IFRS 17 on Reinsurance Held
• IFRS 9, IFRS 17 and Accounting for Financial Instruments of Insurance Companies
• Presentation and Disclosure

Registration Fees

Registration
Options
Before
October 3,
2017
Before
October 24, 
2017
After
October 24, 2017
Conference only  $2,099.00 + HST $2,199.00 +HST $2,299.00 +
HST
Both Conference & Workshop $2,499.00 + HST $2,599.00 + HST $2,799.00 +
HST
Workshop only      $ 599.00 + HST $ 649.00 + HST $ 699.00 + HST

Our HST Number: R862562543

Group Discount: Fourth Delegate FREE!

If three individuals from one organization register at the same time, a fourth person may also be registered to attend free of charge. The free registration must be of equal or lesser value than the paid registrations. Please contact us to arrange for attendance of larger groups.

Your Registration Includes

Registration fees include all conference materials, continental breakfast, lunch and refreshments. Parking and accommodation are not included.

FREE CONFERENCE WORKBOOK

As a registered delegate, you will receive a complete set of conference materials. These materials will serve as an invaluable guide, both during and after the event. The workbook will be distributed on the morning of the first day beginning at 8:00 a.m.

Cancellation Policy

Substitutions may be made at any time. If you are unable to attend, please make cancellations in writing and fax to (416) 504-6978 prior to 5:00 p.m. on November 7, 2017. A credit voucher will be issued to you for the full amount, redeemable against any other Acumen conference. If you prefer, you may request for a refund of fees paid less $250 administration fee. Registrants who cancel after above date will not be eligible to receive any credits or refunds and are liable for the entire registration fees.

Confirmed delegates who do not cancel before November 7, 2017, and fail to attend will be liable for the entire registration fees.

Acumen Information Services reserves the right to change the date, location and content for the event(s) offered herein without further notice and assumes no liability for such changes.

Early Bird Registration Discount

Register prior to to October 24, 2017 and you will obtain the following additional savings:

Second delegate: $100  Discount
Third delegate: $150  Discount
Fourth delegate: FREE

Please indicate that you are eligible for this offer on the registration page or your registration form if you are mailing in your registration.

Location – Accommodation

The venue for this event has not been finalized. All delegates will be notified by email once venue details are available.

Delegates can register at the Acumen service desk beginning at 8:00 a.m. on the morning of the first day of the conference. Registration fees do not include hotel accommodation.

Conference Agenda

Program - November 21

9:00 a.m. – 9:05 a.m.
Opening Remarks from the Chair

Neil Harrison, Partner, Deloitte LLP

9:05 a.m. – 10:00 a.m.
IFRS 17 Insurance Contracts – Overview and Interaction With Other IFRS Standards

Neil Harrison, Partner, Deloitte LLP

  • Introduction and background
  • Definition of insurance contracts and scope
  • Grouping of contracts
  • Overview of the measurement model
  • Interaction with IFRS 9 Financial Instruments
  • Presentation and disclosure
  • Transition

10:00 a.m. – 11:00 a.m.
Assessing the Operational Impact of IFRS 4, Phase II – Industry Perspectives

Lynda Sullivan, Executive Vice President and Chief Accounting Officer, Manulife Financial Corporation
Marie-Josée Sylvestre, Director Operations and Accounting, Intact Financial Corporation

  • Looking at the business impact of implementing IFRS 17
  • Organizational and business process issues that must be considered
  • What accounting changes will mean to future operations
    • potential for increased volatility and the “two-sided OCI”
    • impact of measurement requirements on systems and data management
  • Managing the transition period – planning, testing, roll out
    • when to start
    • what to do first
    • resources that will be required
  • Will hedge accounting be required to manage balance sheet impact?
    • does Phase II create a trade-off between IFRS accounting and risk management?

11:00 a.m. – 11:15 a.m. – Morning Networking Break

11:15 a.m. – 12:30 p.m.
Initial Recognition and Measurement of Insurance Contract Liabilities

Hudson Lopez, Partner KPMG LLP

  • Expected Value of Cash Flows
    • measurement at the portfolio level and defining your portfolio(s)
    • applying the “contract boundary” concept
    • cash flows included in applying the building block approach
  • Discount Rate
    • dealing with lack of linkage between assets held and discount rate for liabilities
    • top down/bottom up approaches to calculate discount rate
    • permitted approaches
    • use of OCI for interest-rate related volatility
    • managing volatility arising from IFRS 17 accounting
  • Risk Adjustment
    • understanding what is required in the risk adjustment estimate
    • measuring and reporting changes in the risk adjustment
  • Contractual Service Margin
    • establishing contractual service margin at inception
    • ongoing adjustment of the contractual service margin
    • recognition in profit and loss
    • accretion of interest
    • unlocking the contractual service margin

12:30 p.m. – 1:30 p.m. – Luncheon

1:30 p.m. – 2:15 p.m.
Level of Aggregation in IFRS 17

Jitka Uhlirova, Director, PricewaterhouseCoopers LLP

  • How does level of aggregation impact the measurement of insurance contracts
    • review of requirements
  • Defining a “portfolio” of insurance contracts
    • portfolio in other areas of IFRS 17
    • consistency of accounting policy and linkage to IAS 8
    • deeper dive into issues related to definition of portfolio:
    • “similar risks”
    • “managed together”
  • Defining “groups” of insurance contracts
    • deeper dive into some of the issues related to groups of contracts
    • determining onerous contracts
    • contract with no significant risks of becoming onerous
  • What is the level of aggregation on transition

2:15 p.m. – 3:00 p.m.
Subsequent Measurement Under the General Model

Matthew Garnier, Senior Advisor, Deloitte LLP

This session will describe how period over period changes in the measurement of insurance contract liabilities are reflected in the Statement of Comprehensive Income for contracts measured under the General Model including:

  • Unwinding of the time value of money and changes in discount rates
  • Treatment of changes in the value of options and guarantees
  • Treatment of experience adjustments
  • Treatment of changes in estimates separately for the liability for remaining coverage and the liability for claims
  • Accretion of interest on and the amortization of the contractual service margin
  • Treatment of changes related to the use of discretion

3:00 p.m. – 3:15 p.m. – Afternoon Networking Break

3:15 p.m. – 4:05 p.m.
Variable Fee Approach – Principles and Application

Janice Deganis, Partner, Ernst & Young LLP
Bobby Thompson, Senior Manager, Ernst & Young LLP

  • Assessing the benefits of the Variable Fee Approach
  • Differences between the General Model and the Variable Fee Approach
  • Determining contracts eligible for the Variable Fee Approach
    • understanding the business model of the direct participating approach
    • treatment of indirect par vs. non-par and subsequent measurement
  • Identifying discretionary cash flows
  • Issues for implementation
    • use of mutualization
    • accounting for time value of options and guarantees
    • occurrence of a loss component
    • mixed measurement asset portfolio
    • change of underlying portfolio
  • Differentiating “changes related to market variables” vs. discretion
  • Changes to asset-dependent cash flow due to financial components
  • Discount rates for CSM adjustments
  • Risk mitigation
  • llustrative examples

4:05 p.m. – 5:00 p.m.
Working with IFRS 17 – Early Observations from Sun Life Financial

Erin Taylor, Vice President Finance and Chief Accountant, Sun Life Financial
Lesley Thomson, Deputy Chief Actuary, Sun Life Financial

Sun Life has been closely tracking the evolution of IFRS 17 for several years. Providing comments and recommendations to the IASB based on their examination of the impact and practical outcomes along the timeline of the standard’s development, Sun Life has been at the forefront of understanding and evaluating its impact on the insurance industry. This session will provide practical perspectives on key issues that are most timely at the date of the conference and features two of the company’s senior executives most involved in the IFRS 17 planning process.

End of Day 1

Conference Agenda

Program - November 22

9:00 a.m. – 9:05 a.m.
Opening Remarks from the Chair

Hudson Lopez, Partner KPMG LLP

9:05 a.m. – 9:50 a.m.
LICAT and IFRS 17 – Regulatory Capital and Accounting Interaction

Stephane Levesque, Partner, KPMG LLP

  • Overview of key interactions between new accounting standard (IFRS 17) and new regulatory
    capital requirements (LICAT)
  • LICAT Implementation - Key issues and how to leverage the experience for IFRS 17
    • data and assumptions
    • systems and models
    • processes and controls
    • reporting and analysis
  • IFRS 17 implementation – Key policy decisions and associated regulatory capital considerations
    • transition approach
    • discount rate
    • risk margin
    • contractual service margin

9:50 a.m. – 10:45 a.m.
Practical Examples of Applying IFRS 17 – Examining the Impact

Owen Thomas, Partner, PricewaterhouseCoopers LLP

  • Practical examples of subsequent measurement considerations for the contractual service margin,including
    • addition of new contracts
    • changes in assumptions
    • accretion of interest
    • allocation to profit or loss
  • Additional practical examples of subsequent measurement considerations for reinsurance contracts held

10:45 a.m. – 11:00 a.m. – Morning Networking Break

11:00 a.m. – 12:00 p.m.
Planning for Transition

Janice Deganis, Partner, Ernst & Young LLP
Bobby Thompson, Senior Manager, Ernst & Young LLP
Todd McRae, IT Partner, Ernst & Young LLP

  • Establishing a steering committee to guide the change program
  • Determining program work flow streams and internal project management structure
  • Scoping the program and understanding changes needed to the existing reserving infrastructure
  • Consider new data requirements
  • Assess initial impacts to products
  • Establish communication protocols with the Board of Directors
  • Use initial scoping exercise to understand implications and limitations in applying the transition methods:
    • Full retrospective approach
    • Modified retrospective approach
    • Fair value approach
  • When and how to use each transition approach
  • Costs and benefits of each transition approach
  • Communicating transition to IFRS 17 to stakeholders internally and external

12:00 p.m. – 1:00 p.m. – Luncheon

1:00 p.m. – 1:45 p.m.
Implementing the Premium Allocation Approach for Short Duration Contracts

Pierre Lepage, Partner, KPMG LLP

  • Rationale and scope for eligible contracts
  • Measurement of pre-claims obligation and liability
    • alignment with new revenue recognition criteria
    • determining onerous contracts
  • Measuring liabilities for claims incurred
    • impact of inclusion or risk adjustment and ongoing remeasurement
  • Use of premium allocation approach for coverage periods longer than one year
  • Examples in the application of the premium allocation approach

1:45 p.m. – 2:30 p.m.
Impact of IFRS 17 on Reinsurance Held

Marco Fillion, Partner, PricewaterhouseCoopers LLP

How IFRS 17 changes the accounting

  • review of requirements specific to reinsurance contracts held

Deeper dive in some of the issues

  • does the contract transfer significant insurance risk?
  • initial recognition of a group of reinsurance contracts
  • contract boundaries - some examples
  • non-performance risks and ceding commissions
  • determining risk adjustment and diversification benefits
  • accounting mismatch
    • recognition of gains and losses
    • different models for direct and ceded

2:30 p.m. – 2:45 p.m. – Afternoon Networking Break

2:45 p.m. – 3:45 p.m.
IFRS 9, IFRS 17 and Accounting for Financial Instruments of Insurance Companies

Raghuvir Rajagopalan, Senior Manager, KPMG LLP
Jana Russell, Senior Manager, KPMG LLP

  • Overview of IFRS 9 as it applies to insurance industry assets/liabilities
    • treatment of insurance contracts/liabilities not subject to IFRS 17 requirements
  • Interaction of IFRS 17 with IFRS 9 classification and measurement criteria (including designation criteria)
  • Impairment of financial instruments
  • Hedge accounting for insurers

3:45 p.m. –4:45 p.m.
Presentation and Disclosure

Janice Deganis, Partner, Ernst & Young LLP
Katy Gardiner, Partner, Ernst & Young LLP
Bobby Thompson, Senior Manager, Ernst & Young LLP

  • Presentation
  • Statement of Financial Position
    • applying the requirement to disaggregate components–what and where
      • under general model
    • under premium allocation approach
  • separation of insurance contracts and reinsurance contracts
  • presenting unit-linked contracts and contract with investment components
  • Statement of Comprehensive Income
    • understanding and applying the earned-premium presentation
      • impact of key metrics – loss of volume information?
    • presentation of short and long-duration contracts
    • allocations to non-claims fulfillment costs
    • considerations for tracking of assumptions over life of contract
    • acquisition costs
  • Other Comprehensive Income
  • Examples of financial statement presentation

Disclosure

  • Examination of the new disclosures required by IFRS 17
  • Understanding and applying the aggregation principle for disclosures
    • determining the appropriate aggregation level
  • Mandatory confidence level disclosure equivalent for risk adjustment
  • Required level of disaggregation of reconciliation of carrying amounts
  • Addressing effect of regulation on reported equity in disclosures
  • Disclosures for contracts with cash flows linked to underlying items
  • Disaggregation disclosures for contracts using the building block or premium allocation approaches

Optional Post-Conference Workshop

IFRS 17 Implementation –
Project Planning & Initial Decisions
Practical Issues for Approaching the Transition to IFRS 17

Program - November 23

9:00 a.m. – 12:30 p.m.
(There will be a 15 minute break mid-morning)

Workshop Leader(s):

Paul Downes, Partner, Deloitte LLP
Andrew Holland, Partner, Deloitte LLP
Elaine Hultzer, Partner, Deloitte LLP
David Spratt, Director, Deloitte LLP

The objective of this workshop is to map out initial considerations for insurance companies to address in transitioning to IFRS 17. A holistic approach to looking at the impact of the new standard on organizations is contemplated with a view to addressing all/much of the following:
What are the first steps that should be taken?

    • 1. How does IFRS 17 interact with/impact other accounting and regulatory processes?
    • 2. How can existing processes and systems be leveraged to assist in the implementation?
    • 3. Understanding differences, and similarities, in terms and concepts between LICAT and other IFRS’
    • 4. Practical exploration of how IFRS 17 will change from current accounting and the consequent changes in accounting, models, etc. that must be anticipated
    • 5. Who needs to be involved in the process, and why?
    • 6. How much new testing and modelling does IFRS 17 require (by implication if not expressly)
      7. Planning time lines and project phases
      8. Planning time lines and project phases

This conference has been specifically designed for, and in consultation with, experts in accounting for financial institutions as well as standard setters.  The event has been developed with the professional responsibilities of our audience as our focus.  As well, auditors, financial advisors, analysts, lawyers and other advisory professionals would benefit from staying current on the information provided at this timely event.  In particular, our experience indicates that individuals in the following positions would mostly likely be in attendance:

  • Chief Financial Officers
  • Chief Accountants
  • Chief Risk Officers
  • VPs, Directors and Managers
    • Finance
    • Accounting
    • Financial  Reporting
    • Regulatory Accounting
    • Risk Management/Reporting
  • Controllers
  • Internal Auditors
  • Audit Committee Members
  • Corporate Counsel
  • Risk Managers
  • Audit and Assurance Professionals
  • Industry Regulators and Standard Setters
  • Financial Analysts

To obtain a copy of the brochure, please send a request to the email below or click on the image of the brochure on this page.

e-mail at info@acumeninformation.com

Comments From Participants  Attending Acumen Conferences –Information You Can Work With

“…provided a very good high level summary of the key impacts of IFRS to financial institutions.”

Associate Chief Accountant
Bank of Montreal

“Presentations were clear even though topics were complex.”

Chief Financial Officer,
Société Générale

“Best conference I’ve ever attended.”

Senior Manager, Enterprise Hedge Accounting and Derivative Reporting
Royal Bank of Canada

“Suffice it to say that the conference delivered on my expectations…A lot has been taken away from this conference…$ well spent…”

V.P. Risk Management Advisory,
New Brunswick Credit Union Stabilization Board

“…excellent breadth of coverage of a very complex series of regulations…”

Senior Treasury Analyst,
Meridian Credit Union

“…helped to clarify my understanding of requirements of ORSA…”

Risk Management Consultant,
Empire Life Company

“Well rounded. Good flow.”

Manager, Capital Risk,
RSA

“Speakers were very knowledgeable, materials were current…examples and materials were relevant and well presented.”

Derivatives Accountant
Agrium Inc.

To submit questions to be answered at the conference, please send us an email at this address at  info@acumeninformation.com

Limited sponsorship and exhibition options are available for this event, including

• Cocktail reception
• Luncheon sponsorship
• Breakfast sponsorship
• Booth/exhibit space

For more information, or to check availability,
please contact us by phone at (416) 504-6952
or by e-mail at  info@acumeninformation.com