Agenda at a Glance


Wednesday, August 29, 2018
 

8– 9 a.m.   
     

Breakfast
 

9–10:15 a.m. 
 
Presentation 1: Overview of IFRS 17 Standard; General Measurement Model vs. Variable Fee Approach
  • Angie Matthews, MAAA, FSA
This introductory session will begin with a high level overview of the standard as context for the more detailed discussions of the subsequent sessions. Topics will include:
  • Scope of the standard
  • Separating components
  • Level of aggregation
  • The building blocks of measurement: best estimate liability, risk adjustment and Contract Service Margin (CSM)
  • The premium allocation approach
  • The general model approach
  • The variable fee approach
  • The OCI option
  • Reinsurance
  • Presentation and disclosure
  • Transition
The session will then focus on the General Measurement Model vs Variable Fee Approach, mainly on the determination of whether a contract meets the criteria for an insurance contract with direct participation features and is therefore subject to the variable fee approach. Also included will be a discussion of the similarities and differences between the general model approach to CSM measurement and the variable fee approach to CSM measurement.

10:15–10:30 a.m.
 

Break
 

10:30–11:45 a.m.
 
Presentation 2: Cash Flows & Contract Boundaries; Discount Rates
  • Mike Lockerman, MAAA, FSA
  • Mike Lombardi, MAAA, FSA, FCIA, CERA
This session will introduce the cash flows, contract boundaries and discount rates. Identification and measurement of embedded derivatives, service contracts and investment components will be discussed. Presenters will also describe how discount rates are determined using either the bottom-up or the top down approach. Topics include use of observable market rates, estimating credit loss, yield curve extrapolation, adjusting for inflation, risk-free curves, and stochastic scenarios. The session will also address when locked-in rates apply in both the General Measurement Model (GMM) and the Variable Fee Approach (VFA).

11:45 a.m.–1 p.m. 
 

Lunch
 

1–2:15 p.m. 
   
Presentation 3: Risk Adjustment
  • Dave Sandberg, MAAA, FSA, CERA
  • Hui Shan, MAAA, FSA, CERA

This session will share two perspectives on risk adjustments/margins. One perspective is as required by IFRS 17 for risk adjustments and will focus on the recently IAA published principles and concepts from the Risk Adjustments for Insurance Contracts. The other perspective will discuss risk margins for solvency purposes and the similarities and differences between IFRS risk adjustments and the two risk margin approaches being considered by the IAIS for International Capital Standard 2.0 which will be released just prior to the seminar.

2:15–2:30 p.m.
 

Break
 

2:30–3:45 p.m. 
 
Presentation 4: Contract Service Margin
  • Nicole Kim, MAAA, FSA
  • Roger Smith, MAAA, FSA, CERA
This session will focus on two key components of the IFRS 17 calculations, the Contract Service Margin (CSM) and grouping of policy contracts. The session will review the CSM calculations with real life examples under various scenarios and cover different approaches for general measurement model and variable fee approach. The session will also discuss considerations and potential challenges around implementing the CSM with respect to data, process and technology. 

3:45–4 p.m.   
 

Break
 

4–5:30 p.m.     
 
Workshop
The seminar will include a workshop where participants are encouraged to bring their laptop to gain hands on experience with real world examples. Small groups will work cooperatively with the seminar’s presenters to put the IFRS 17 learnings into practice by considering practical implementation problems and working in small groups to solve them.

5:30–7 p.m.     
 

Cocktail Reception
 
 

Thursday, August 30, 2018
 

7:30–8:30 a.m.
 

Breakfast
 

8:30–9:45 a.m.
 
Presentation 5: Presentation, OCI, Disclosures
  • Mike Lockerman, MAAA, FSA
  • Casey Malone, MAAA, FSA
This session will introduce the "OCI option" including how it applies to different contracts and is measured. The presenters will then introduce the all new financial statement presentation and contrast it to current incomes statements and balance sheets. The presentation will conclude with an explanation of the new disclosure requirements within IFRS 17, as well as how one might go about performing attribution analysis to support the disclosures.

9:45–10 a.m.
 

Break
 

10–11:15 a.m.
 
Presentation 6: Reinsurance
  • Kyle Stolarz, MAAA, FSA
  • Bill Horbatt, MAAA, FSA

IFRS generally treats reinsurance the same as direct insurance, but with some differences. Reinsurance almost doubles disclosures since direct and reinsurance ceded must be separately disclosed. Ceded reinsurance also introduces complications such as not permitting the variable fee approach (VFA), modifying reinsurance credits for the cost of expected defaults and not requiring loss recognition in ceded reserves.

11:15 a.m.–12:15 p.m.
 

Lunch
 

12:15–1:30 p.m.
 
Presentation 7: Transition Issues
  • Doug Van Dam, MAAA, FSA
  • Darin Zimmerman, MAAA, FSA
One of the earliest tests you will face will be getting your existing in-force ready for the initial presentation under IFRS 17. This session will go through the three methods defined for transition and considerations for implementing each. In addition, this session will touch on business combinations. 

1:30-1:45 p.m.   
 

Break
 

1:45–3 p.m.
 
Presentation 8: Emerging Developments in TRG
  • William Hines, MAAA, FSA

In this session on emerging issues, hear directly from an official observer to the IASB’s IFRS 17 Transition Resource Group (TRG) for discussion.  William Hines, the observer from the International Actuarial Association will present a summary of the issues discussed at the first two TRG meetings of 2018.  Issues to be discussed at the September 2018 TRG meeting will also be presented if they are available at the time of the seminar.