The insurance industry has developed organically over centuries, its growth fuelled by meeting societal needs, but accelerated by historically unscrupulous sales practices. Of course, the latter have been curbed in recent years by increasingly strict regulation in areas such as commission and capital management, but the industry reaps the benefits of history.
MBE publishes A Calculated Risk, a report summarising our analysis of the 2020 benchmarking exercise on insurers’ current thinking and actions regarding the IFRS 17 risk adjustment and confidence level.
Our client had selected a software provider for their IFRS 17 solution. MBE was able to reduce the total estimated spend from R40 m to R7 m.
Complying with the IFRS 17 insurance contracts accounting standard is hard work, especially for firms writing long-term contracts. Pamela Hellig discusses the potential for the premium allocation approach to relieve the pressure.
A large South African bancassurer approached MBE to perform an impact assessment of IFRS 17 for some of their life and short-term insurance products. The main aim was to compare the calculation requirements and results of IFRS 4 and IFRS 17, under both the General Model and Premium Allocation approaches.
Pamela Hellig considers the main points product development actuaries may need to think about when designing and pricing products in an IFRS 17 world.
It’s been said that the greatest challenge posed by IFRS 17 is its data requirements. But is this really the case?