Introducing IFRS Assess – Simplifying IFRS 17 Implementation

IFRS Assess screenshot

IFRS Assess is MBE Consulting’s cost-effective modelling and simulation tool that assists clients in understanding the impact of IFRS 17 on all areas of the business.

Key Features

  • Supports investigations and effective and efficient decision-making processes in all areas required by IFRS 17 regulations.
  • Flexible spreadsheet-based solution that allows users to customise it for specific product features and reinsurance structures.
  • Supports scoping, design and planning of the system landscape affected by IFRS 17.
  • Demonstrates to stakeholders how key financial metrics e.g. P&L and Balance sheet, are likely to differ between IFRS 4 and IFRS 17.

Investigation and decision making 

Investigate how different interpretations of IFRS 17 principles may impact various reporting components. Interpretations include: 

  • Grouping of insurance and reinsurance contracts.
  • Coverage units in the amortisation of the CSM (coverage units can be set at the group level). 
  • Different approaches to calculating the Risk Adjustment. 
  • Assessment of Fair Value and Modified Retrospective approaches when calculating transitional and future profits. 
  • Analysis of different reinsurance structures. 

Benefits

  • Provides valuable insights into assessing the various options and interpretations 
  • permitted within the IFRS 17 principles. 
  • Allows senior managers and the board to be proactive and make informed strategic decisions in the lead-up to IFRS 17 implementation

Flexible and dynamic 

IFRS Assess is easy to understand, use and update: 

  • IFRS Assess is an Excel-based tool, with all calculations employing basic Excel functions, which are transparent and accessible to the end user. 
  • Formulas and inputs can be customised to accommodate client-specific product and reinsurance features. 
  • Output graphs are dynamic and ideal for executive reports and presentations. A single control tab allows runs to be set up and executed quickly and simply. 
  • Layout and formatting adhere to spreadsheet best practice, making the flow of data intuitive and easy to follow. 

Benefits

  • Provides relevant insights by allowing for unique product and company features e.g. complex expense structures. 
  • Facilitates interactions and discussions across Actuarial and Finance functions by presenting the calculations and results in an accessible format. 
  • Facilitates the training of team members and education of stakeholders. 

Scoping, design and planning

IFRS Assess facilitates the following aspects of actuarial system scoping, design and planning:

  • Data requirements and specifications for in force business and retrospective and modified retrospective transitional approaches.
  • Actuarial model design, including model point grouping and CSM and loss component calculations.
  • Methodology for assigning coverage units, unlocking the CSM and tracking the loss component.
  • Data flow and process design.
  • Test pack design and independent validation of actuarial models.

Benefits

  • Allows assessment of the available options before making expensive changes to, and investment in, existing and new systems and models.
  • Ensures that the implementation of any required changes is effective, efficient and avoids excessive implementation costs. 
  • Reduces overall project risk.

Demonstration of emergence of profits 

The output of IFRS Assess demonstrates how key financial metrics are likely to differ between IFRS 4 and IFRS 17: 

  • Accurate calculation of IFRS 17 P&L and Balance Sheet components e.g. insurance revenue and insurance service expenses.
  • Graphs provide a comprehensive visual representation of how IFRS 17 profit cashflows, IFRS 4 profit cashflows and risk adjustment are released over time. 
  • Dynamic reports allow users to compare emergence of profits between products, business units and groups of policies. 

Benefits

  • Provides clarity and certainty to boards on the impacts of various decisions on the 
  • IFRS 17 Balance Sheet and Income Statement. 
  • Serves as proof of concept/replicator for new or existing industrialised modelling solutions. 

For more details about IFRS Assess please contact us or download our IFRS Assess presentation.

Rachel Long