Actuarial Notes

Insurance Contracts: First Impressions, 2020 Edition

By KPMG IFRG Limited · 2020 · ILA101-111-25

Study guide: Exam ILA-101

A July 2020 KPMG publication on IFRS 17 Insurance Contracts, produced by the KPMG International Standards Group. This 2020 edition provides an overview of the revised standard and how it may affect insurers' financial statements. It considers the requirements of IFRS 17 as published by the Board in June 2020 and refers to selected other standards in issue at 1 July 2020.

On the syllabus

  • Exam ILA-101 — Outcomes 4c; only Sections 1.1-1.2, 3.1, 5.1-5.3, 6.1-6.4, 14.1-14.2, 15.1-15.2, 17.1-17.3, 20.1.

Counting down to transition

1 IFRS 17 at a glance

  • 1.1 Key facts
  • 1.2 Key impacts

2 Overview

3 When to apply IFRS 17

  • 3.1 Scope
  • 3.2 Separating components from an insurance contract

4 Initial recognition

  • 4.1 When to recognise a group of contracts
  • 4.2 Insurance acquisition cash flows

5 The general measurement model – Overview

  • 5.1 Introducing the model
  • 5.2 Initial measurement
  • 5.3 Subsequent measurement
  • 5.4 Modifications to the general measurement model

6 Level of aggregation

  • 6.1 Aggregating contracts into groups
  • 6.2 Identifying portfolios
  • 6.3 Grouping onerous contracts
  • 6.4 Grouping contracts that have no significant possibility of becoming onerous subsequently
  • 6.5 Regulatory constraints
  • 6.6 Further disaggregation
  • 6.7 Level of aggregation used for estimation

7 Expected cash flows

  • 7.1 Estimating expected cash flows
  • 7.2 Incorporating different possible outcomes
  • 7.3 Cash flows that are included in the estimates
  • 7.4 Information used to make the estimates
  • 7.5 Using estimates of expected cash flows in measurement

8 Discounting

  • 8.1 Adjusting for the time value of money
  • 8.2 Determining the discount rate
  • 8.3 Estimation techniques
  • 8.4 Using discount rates in measurement
  • 8.5 Presentation of insurance finance income or expense

9 Risk adjustment

  • 9.1 Adjusting for non-financial risk
  • 9.2 Entity’s perspective
  • 9.3 Estimation techniques
  • 9.4 Using a risk adjustment for non-financial risk in measurement

10 Contractual service margin

  • 10.1 Initial recognition
  • 10.2 Subsequent measurement

11 Onerous contracts

  • 11.1 Initial recognition
  • 11.2 Subsequent measurement

12 Derecognition and contract modifications

  • 12.1 Derecognition
  • 12.2 Contract modifications

13 Presentation

  • 13.1 Statement of financial position
  • 13.2 Statement(s) of financial performance

14 Premium allocation approach

  • 14.1 A simplified model
  • 14.2 Eligibility
  • 14.3 Liability for remaining coverage
  • 14.4 Liability for incurred claims

15 Direct participating contracts

  • 15.1 Understanding participation features
  • 15.2 What are direct participating contracts?
  • 15.3 Subsequent measurement

16 Investment contracts with DPFs

  • 16.1 Modifications to the general measurement model

17 Reinsurance contracts held

  • 17.1 What is a reinsurance contract?
  • 17.2 Modifications to the general measurement model
  • 17.3 Recognition
  • 17.4 Estimating expected cash flows
  • 17.5 Risk adjustment for non-financial risk
  • 17.6 CSM on initial recognition
  • 17.7 CSM subsequent to initial recognition
  • 17.8 Subsequent measurement of loss recovery components
  • 17.9 Presentation of reinsurance contracts held

18 Insurance contracts acquired

  • 18.1 Acquired insurance contracts

19 Disclosures

  • 19.1 The general disclosure objective
  • 19.2 Level at which to disclose information
  • 19.3 Disclosures about recognised amounts
  • 19.4 Disclosures about significant judgements
  • 19.5 Disclosures about risks

20 Effective date and transition

  • 20.1 Effective date
  • 20.2 Transition to IFRS 17
  • 20.3 Transition disclosures
  • 20.4 Redesignation of financial assets
  • 20.5 Comparative financial information
  • 20.6 First-time adopters of IFRS

About this publication

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