Introducing IFRS Assess - Simplifying IFRS 17 Implementation

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.