IFRS 17 Conference 2023

PANEL DISCUSSION: DISCLOSURES, METRICS AND COMPARABILITY. HOW ARE INSURERS VIEWING AND COMPARING APPROACHES TAKEN BY THEMSELVES AND THEIR PEERS IN LIGHT OF THE INITIAL EXTERNAL COMMUNICATIONS? WHAT CONCLUSIONS CAN BE DRAWN ABOUT LEVELS OF COMPARABILITY?

• Initial overall response to the 1st wave of disclosures -any surprises?
• Level of detail of disclosure – qualitative vs quantitative
• A compare and contrast of the different approaches adopted by insurers: How are approaches and resulting outcomes either in line with, or different from firm to firm?
• Measurement model choice
• Transition approaches
• Discount rate choice
• Calculating the CSM
• What are we seeing in terms of anticipated impact on shareholders equity?
• Definition of operating result
• Advantages and disadvantages of each choice – what has led each insurer to the choice they have made?
• Minimising the risk of misinterpretation – How have you taken your investors and market with you on the IFRS 17 journey?
• Based on outcomes so far, which of the implementation approaches are candidates for re-evaluation and what is fixed forever?
• With the wide extent of choices available, is comparability a realistic expectation?

Moderator:
Chris Cundy, Managing Editor, InsuranceERM

Panellists:
Alberto Messina, Director, Insurance, Fitch Ratings
Jo Clube, Group Technical Accounting Director, Aviva
Richard Rees, IFRS 17 –Accounting Policy Lead, QBE

WHAT DOES PERFORMANCE MANAGEMENT UNDER IFRS 17 LOOK LIKE? - DEVELOPING A NEW FRAMEWORK FOR BUSINESS STEERING

• How well do insurers understand the numbers at this stage?
• Forecast planning: Challenges in understanding how market movements and market impacts affect IFRS 17 numbers
• Actual vs. planned data
• To what extent are companies already using IFRS 17 metrics to measure performance internally and to make decisions?
• Long-term -how will IFRS 17 affect internal performance metrics within companies. Where might other financial data sources be used to steer the company?
• How are insurers approaching KPIs? Maintaining existing KPIs? Introducing new KPIs? Different KPIs for internal-only use? How are firms going about designing KPIs? Which factors are they focussing on and which factors are they intentionally ignoring?
• What does the choice of KPI indicate about the insurer? What can we deduce from the choices made in selecting KPIs?
• Giving clear explanations of KPIs and justifying differences.
• How does the industry move towards a common set of definitions for KPIs?
• Internal stakeholder management - Managing the transition period as KPIs are revised

Moderator:
Anthony Silverman, Director, AM Best Rating Services

Panellists:
Anja Røkenes, Senior Vice President Group Accounting, Storebrand
Madhuri Kumar, Executive Director – Actuarial & Client services, Ultimate Risk Solutions
Mark Nicholson, Director, Insurance Ratings & Co-Lead IFRS 17 Task force, Standard & Poor's
Sébastien Crouzet, Global Program Director IFRS 17 and IFRS 9, Group Finance, Zurich

STAKEHOLDER INSIGHT: FEEDBACK FOLLOWING THE FIRST WAVE OF EXTERNAL COMMUNICATIONS

• Initial response to insurer disclosures.
• What are analysts looking for from these disclosure exercises and have expectations been met?
• How effective was communication and engagement with insurers prior to disclosure?
• How satisfied are you with the information disclosed and the level of detail provided? Comprehensive or is supplementary information required?
• What changes will IFRS 17 make in the way insurers communicate their finances to internal an external stakeholders?
• Insurers anticipate little to no impact on the business as a result of IFRS 17 -what is the external stakeholder perspective on this? Will IFRS 17 change your view of the business? To what extent will you be using IFRS 17 figures to inform your view of the business?
• How have rating agencies adapted models to accommodate and be ready for IFRS 17?
• What is the roadmap to achieving comparability and consistency in interpretations? Whose role is this?
• What are your expectations on insurers for the remainder of 2023 and beyond
• Looking to the future – IFRS 17 vs SII – where will most value lie?

Moderator:
Chris Cundy, Managing Editor, InsuranceERM

Panellists:
Anthony Silverman, Director, AM Best Rating Services
Milena Lacheta, Head of UK Strategic Financial Advisory, Gallagher Re

AUDITORS AND INSURERS IN CONVERSATION

• The final stages of approval: where are the sticking points??
• Where have insurers struggled to gain sign off and how has this been reconciled?
• Alignment between audit firms – how do interpretations differ between auditors and how does the industry circumnavigate this?
• Challenges ahead for the auditors
• How have auditors been readying themselves?
• Update on new systems, processes and controls
• Resourcing challenges
• Training
• Effective communication as audit firms move from advisor role to auditor

Moderator:
Ronan McCaughey, Commercial Editor and Deputy Editor, InsuranceERM

Panellists:
Geeta Joshi, Audit Partner, BDO
Joanna Yeoh, Global IFRS 17 Implementation Lead, Chubb
Vitalina Kobernik, Director, IFRS 17 technical accounting and audit methodology lead, Mazars

INSURER READINESS: BEDDING IN AND IRONING OUT THE FINAL IMPLEMENTATION PAIN POINTS

• In what areas can we still make changes and choices that will influence outcomes for the better?
• Ongoing interpretation issues
• Issues arising from simultaneous application of IFRS 9 & 17
• To what extent did plans to use IFRS 17 implementation as an opportunity to transform finance functions prove successful? What impact/influence have these projects had on insurer readiness for IFRS 17 go live?
• Challenges around the working day timetable
• Are the operational data flows working as expected?
• Outstanding issues and complexities in the process chain
• What tools do firms have in place for workflow management?
• Data interface challenges
• Ensuring data quality
• Adjustments to the closing calendar

Moderator:
Paul Walsh, Senior Staff Writer, InsuranceERM

Panellists: 
Cathal Lillis, Independent Actuarial Consultant, Lillis Consulting Ltd
David Wilson, IFRS 17 Programme Director, Aegon
James Clatworthy, Group IFRS 17 Data and Systems Lead, Aviva
William Diffey, Chief Actuarial Officer – Europe, Assurant

SWITCHING OFF THE PROGRAMME: MANAGING A SMOOTH HANDOVER PROCESS AND TRANSFERRING TO BUSINESS AS USUAL

• What approach are firms taking to 'switching off'? building block? gradual? Turn off the tap?
• Governance going forward: what organisational set ups are firms favouring? How are roles and responsibilities split between actuarial and accounting firms? What new teams have been set up?
• Managing the period of dual reporting
• At what stage and how do you transition to purely IFRS 17 based?
• Internal stakeholder engagement & communication -managing the education piece behind the switch
• Training programmes
• Resource requirements during and post transition period
• Retaining knowledge – setting up a pathway to migrate from reliance on external support to internal self sufficiency
• Attracting and keeping talent

Moderator:
Josh Geer, Staff Writer, InsuranceERM

Panellists:
Arnold van Welsum, Senior Programme Manager IFRS 9/17 and 1Finance (Finance Transformation), Achmea
David Wilson, IFRS 17 Programme Director, Aegon
Sébastien Crouzet, Global Program Director IFRS 17 and IFRS 9, Group Finance, Zurich

EVOLVING THE STANDARD AND THE FUTURE OUTLOOK FOR IFRS 17

• Post implementation review – as we go through the implementation process, which areas are emerging as potential targets for a post implementation review?
• Future lobbying – how will the IFRS IC process work going forward?
• What does IFRS 17 supervision look like? What are the priority areas for supervisors, vis a vis IFRS 17?
• The pathway to convergence and industry alignment – how do we move towards the goal of increased and improved comparability?
• Ongoing efforts to align Solvency II & IFRS 17 – what approach are insurers taking to bridge the two and minimise efforts
• Outlook for local GAAPs going forward and consistency with IFRS 17

Moderator:
Ronan McCaughey, Commercial Editor and Deputy Editor, InsuranceERM

Panellists:
David Otudeko, Assistant Director, Head of Prudential Regulation, Association of British Insurers (ABI)
Peter Windsor, Senior Financial Sector Expert, International Monetary Fund
Richard Rees, IFRS 17 –Accounting Policy Lead, QBE

WHERE IS THE VALUE-ADD? HOW DO WE ENSURE THAT IFRS 17 WAS WORTH THE PAIN AND THE COST?

• Have the objectives been met (yet)?
• How do we measure success?
• Whose ultimate responsibility is it to ensure that value is derived out of the standard?
• What tangible value from IFRS 17 are users and preparers already seeing and, perhaps more importantly, targeting for the future?
• Will IFRS 17 lead to large scale business and systems change?
• Aside from enhanced visibility and comparability for reporting purposes, where are the opportunities for other gains?
• Can the data gained be repurposed?
• What extra value can the increased quality of data bring to the firm?

Moderator:
Josh Geer, Staff Writer, InsuranceERM

Panellists:
Hugh Francis, Group Regulatory Affairs & External Reporting Developments Director, Aviva plc
Kamran Foroughi, Global IFRS 17 Advisory Leader, Willis Towers Watson
Simen Gaarder, Group Chief Actuary, Gjensidige

CLOSING REMARKS

END OF CONFERENCE