{"id":29832,"date":"2023-03-03T10:35:35","date_gmt":"2023-03-03T09:35:35","guid":{"rendered":"https:\/\/www.alma-lhp.com\/ifrs-17-part-6\/"},"modified":"2023-04-21T19:28:21","modified_gmt":"2023-04-21T17:28:21","slug":"ifrs-17-part-6","status":"publish","type":"page","link":"https:\/\/www.alma-lhp.com\/en\/ifrs-17-part-6\/","title":{"rendered":"IFRS 17 Part 6"},"content":{"rendered":"

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<\/h1>\n

IFRS 17<\/h1>\n

 <\/p>\n

2023 is a very important year for the insurance industry: The complex set of rules IFRS 17 will come into force on January 1, 2023, replacing the interim standard IFRS 4 Phase I, which has been in force since 2005. The new standard governs the principles of identification, recognition, measurement, presentation and disclosures for insurance contracts.<\/p>\n

Alma will support the implementation of IFRS 17 in the insurance industry. Therefore, Alma will publish short and easy-to-understand articles on IFRS 17 from time to time.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.4″ _module_preset=”default” custom_padding=”0px||||false|false” global_colors_info=”{}”][et_pb_row _builder_version=”4.19.4″ _module_preset=”default” min_height=”65.9px” custom_margin=”|auto|-25px|auto||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

Part 6: Unit of Accounts (UoA)<\/h2>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.20.0″ _module_preset=”default” custom_margin=”|auto|-30px|auto||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.20.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.0″ _module_preset=”default” min_height=”27px” global_colors_info=”{}”]<\/p>\n

The valuation of insurance contracts depends not only on the method and the parameters, but also on the formation of groups of insurance contracts – or “solidarities”: Which insurance contracts are treated together with others in a group is an essential question for the valuation of a portfolio, because here “good” rated ones come together with “bad” rated ones in a group or “solidarity” or not.<\/p>\n

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\n
\n


\n Ad 1: Contract Combination
<\/span>
\n<\/strong>The first issue to discuss is whether there are contract combinations or components to be delineated. See also Part 5 “How to get started with IFSR 17?” items 2 and 3<\/a>.<\/p>\n


\n Ad 2: IFRS 17 Portfolios
<\/span>
\n<\/strong>Then contracts are to be grouped into portfolios that have a similar risk and<\/strong> are managed together.<\/p>\n


\n Ad 3: Profitability Assessment
<\/span>
\n<\/strong><\/span><\/span>
\n <\/span>
\n<\/strong>Within a portfolio, the following three groups of insurance contracts are to be determined:<\/p>\n

    \n
  1. \n
      \n
    1. “Onerous” contracts<\/li>\n
    2. Insurance contracts for which there is no significant probability of becoming onerous<\/li>\n
    3. Other contracts<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n


      \n Ad 4: Annual Cohorts
      <\/span>
      \n<\/strong><\/span><\/span>The portfolios are to be distinguished according to annual cohorts (start of the contract).<\/p>\n

      <\/span><\/p>\n<\/div>\n

      <\/div>\n<\/div>\n
      <\/div>\n

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      IFRS 17   2023 is a very important year for the insurance industry: The complex set of rules IFRS 17 will come into force on January 1, 2023, replacing the interim standard IFRS 4 Phase I, which has been in force since 2005. The new standard governs the principles of identification, recognition, measurement, presentation and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-29832","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.alma-lhp.com\/en\/wp-json\/wp\/v2\/pages\/29832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.alma-lhp.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.alma-lhp.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.alma-lhp.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.alma-lhp.com\/en\/wp-json\/wp\/v2\/comments?post=29832"}],"version-history":[{"count":2,"href":"https:\/\/www.alma-lhp.com\/en\/wp-json\/wp\/v2\/pages\/29832\/revisions"}],"predecessor-version":[{"id":29836,"href":"https:\/\/www.alma-lhp.com\/en\/wp-json\/wp\/v2\/pages\/29832\/revisions\/29836"}],"wp:attachment":[{"href":"https:\/\/www.alma-lhp.com\/en\/wp-json\/wp\/v2\/media?parent=29832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}