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.
- 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.
- 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.
- 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.
- 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.
- 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.
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