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Created page with "🎯 '''Introduction.''' This training programme takes you from first principles to a complete understanding of IFRS 17, the international accounting standard for insurance contracts. Each page builds on the last, starting from the most basic notions and adding complexity one step at a time. No prior knowledge of insurance or accounting is assumed. By the end, you will be able to read, interpret, and work with IFRS 17 financial statements with confidence. === Internal..."
 
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🎯 '''Introduction.''' This training programme takes you from first principles to a complete understanding of IFRS 17, the international accounting standard for insurance contracts. Each page builds on the last, starting from the most basic notions and adding complexity one step at a time. No prior knowledge of insurance or accounting is assumed. By the end, you will be able to read, interpret, and work with IFRS 17 financial statements with confidence.


⚫
🎯 '''Introduction.''' This training program takes you from first principles to a complete understanding of IFRS 17, the international accounting standard for insurance contracts. Each page builds on the last, starting from the most basic notions and adding complexity one step at a time. No prior knowledge of insurance or accounting is assumed. By the end, you will be able to read, interpret, and work with IFRS 17 financial statements with confidence. Click to explore the training.
⚫
=== [[Internal:Training/IFRS17/Why insurance exists|Why insurance exists]] ===

⚫
==== [[Internal:Training/IFRS17/Why insurance exists|Why insurance exists]] ====
* Uncertainty and risk
* Uncertainty and risk
* Pooling as a solution
* Pooling as a solution
* The role of the insurer
* The role of the insurer


=== [[Internal:Training/IFRS17/The economics of an insurance contract|The economics of an insurance contract]] ===
==== [[Internal:Training/IFRS17/The economics of an insurance contract|The economics of an insurance contract]] ====
* Anatomy of a premium
* Anatomy of a premium
* The timing mismatch and the time value of money
* The timing mismatch and the time value of money
* Where profit comes from
* Where profit comes from


=== [[Internal:Training/IFRS17/What is accounting and why it matters|What is accounting and why it matters]] ===
==== [[Internal:Training/IFRS17/What is accounting and why it matters|What is accounting and why it matters]] ====
* The purpose of accounting: who needs it and why
* The purpose of accounting: who needs it and why
* The balance sheet and the income statement
* The balance sheet and the income statement
* Key principles: recognition, measurement, and matching
* Key principles: recognition, measurement, and matching


=== [[Internal:Training/IFRS17/Accounting for an insurer|Accounting for an insurer]] ===
==== [[Internal:Training/IFRS17/Accounting for an insurer|Accounting for an insurer]] ====
* The insurer's balance sheet: reserves as the dominant liability
* The insurer's balance sheet: reserves as the dominant liability
* The insurer's income statement: premiums, claims, and expenses
* The insurer's income statement: premiums, claims, and expenses
* The hard questions: when is revenue earned, how do you value an uncertain promise?
* The hard questions: when is revenue earned, how do you value an uncertain promise?


=== [[Internal:Training/IFRS17/Why insurance broke global standards|Why insurance broke global standards]] ===
==== [[Internal:Training/IFRS17/Why insurance broke global standards|Why insurance broke global standards]] ====
* Different countries, different answers
* Different countries, different answers
* IFRS and the promise of one global language
* IFRS and the promise of one global language
* IFRS 4 as a temporary compromise and why IFRS 17 was needed
* IFRS 4 as a temporary compromise and why IFRS 17 was needed


=== [[Internal:Training/IFRS17/The building blocks: overview|The building blocks: overview]] ===
==== [[Internal:Training/IFRS17/The building blocks: overview|The building blocks: overview]] ====
* The idea of decomposing a liability into transparent pieces
* The idea of decomposing a liability into transparent pieces
* The four components at a glance: FCF, discounting, RA, CSM
* The four components at a glance: FCF, discounting, RA, CSM
* How the building blocks solve the problems of the old world
* How the building blocks solve the problems of the old world


=== [[Internal:Training/IFRS17/Fulfilment cash flows|Fulfilment cash flows]] ===
==== [[Internal:Training/IFRS17/Fulfilment cash flows|Fulfilment cash flows]] ====
* Which cash flows to include
* Which cash flows to include
* The contract boundary
* The contract boundary
* Probability-weighted estimates and keeping assumptions current
* Probability-weighted estimates and keeping assumptions current


=== [[Internal:Training/IFRS17/Discounting|Discounting]] ===
==== [[Internal:Training/IFRS17/Discounting|Discounting]] ====
* Why discounting is essential for insurance liabilities
* Why discounting is essential for insurance liabilities
* Choosing the discount rate: top-down vs. bottom-up
* Choosing the discount rate: top-down vs. bottom-up
* How discounting affects the liability over time
* How discounting affects the liability over time


=== [[Internal:Training/IFRS17/The risk adjustment|The risk adjustment]] ===
==== [[Internal:Training/IFRS17/The risk adjustment|The risk adjustment]] ====
* What the risk adjustment represents
* What the risk adjustment represents
* How to measure it: confidence levels, cost of capital, VaR
* How to measure it: confidence levels, cost of capital, VaR
* How the risk adjustment releases as risk expires
* How the risk adjustment releases as risk expires


=== [[Internal:Training/IFRS17/The contractual service margin|The contractual service margin]] ===
==== [[Internal:Training/IFRS17/The contractual service margin|The contractual service margin]] ====
* What the CSM represents: unearned profit locked away on day one
* What the CSM represents: unearned profit locked away on day one
* How the CSM absorbs changes in estimates
* How the CSM absorbs changes in estimates
* How the CSM releases into revenue: coverage units
* How the CSM releases into revenue: coverage units


=== [[Internal:Training/IFRS17/Grouping contracts|Grouping contracts]] ===
==== [[Internal:Training/IFRS17/Grouping contracts|Grouping contracts]] ====
* Portfolios: contracts with similar risks
* Portfolios: contracts with similar risks
* Profitability groups: separating profitable from onerous
* Profitability groups: separating profitable from onerous
* Annual cohorts: why contracts issued more than a year apart must be separated
* Annual cohorts: why contracts issued more than a year apart must be separated


=== [[Internal:Training/IFRS17/The general model: initial recognition|The general model: initial recognition]] ===
==== [[Internal:Training/IFRS17/The general model: initial recognition|The general model: initial recognition]] ====
* Day one: measuring the four building blocks
* Day one: measuring the four building blocks
* Profitable contracts: CSM is positive
* Profitable contracts: CSM is positive
* Onerous contracts: CSM is zero, loss recognized immediately
* Onerous contracts: CSM is zero, loss recognized immediately


=== [[Internal:Training/IFRS17/The general model: subsequent measurement|The general model: subsequent measurement]] ===
==== [[Internal:Training/IFRS17/The general model: subsequent measurement|The general model: subsequent measurement]] ====
* Passage of time: unwinding discount, releasing RA, releasing CSM
* Passage of time: unwinding discount, releasing RA, releasing CSM
* Changes in estimates: future service adjusts CSM, current/past service hits P&L
* Changes in estimates: future service adjusts CSM, current/past service hits P&L
* Claims incurred, settled, and derecognition
* Claims incurred, settled, and derecognition


=== [[Internal:Training/IFRS17/The income statement under IFRS 17|The income statement under IFRS 17]] ===
==== [[Internal:Training/IFRS17/The income statement under IFRS 17|The income statement under IFRS 17]] ====
* Insurance revenue: not premiums, but service delivered
* Insurance revenue: not premiums, but service delivered
* Insurance service expenses and the insurance service result
* Insurance service expenses and the insurance service result
* Insurance finance income/expense and the OCI option
* Insurance finance income/expense and the OCI option


=== [[Internal:Training/IFRS17/The premium allocation approach|The premium allocation approach]] ===
==== [[Internal:Training/IFRS17/The premium allocation approach|The premium allocation approach]] ====
* When PAA is available: the eligibility test
* When PAA is available: the eligibility test
* How PAA works: simplified measurement
* How PAA works: simplified measurement
* What you keep and what you skip vs. the general model
* What you keep and what you skip vs. the general model


=== [[Internal:Training/IFRS17/The variable fee approach|The variable fee approach]] ===
==== [[Internal:Training/IFRS17/The variable fee approach|The variable fee approach]] ====
* What are direct participating contracts
* What are direct participating contracts
* The variable fee concept: how VFA modifies the general model
* The variable fee concept: how VFA modifies the general model
* Scope and the three eligibility criteria
* Scope and the three eligibility criteria


=== [[Internal:Training/IFRS17/Reinsurance held|Reinsurance held]] ===
==== [[Internal:Training/IFRS17/Reinsurance held|Reinsurance held]] ====
* Reinsurance as the mirror image: the insurer is the customer
* Reinsurance as the mirror image: the insurer is the customer
* Key asymmetries: day-one gains and loss recovery
* Key asymmetries: day-one gains and loss recovery
* Proportionate vs. non-proportionate reinsurance
* Proportionate vs. non-proportionate reinsurance


=== [[Internal:Training/IFRS17/Contract modifications and portfolio transfers|Contract modifications and portfolio transfers]] ===
==== [[Internal:Training/IFRS17/Contract modifications and portfolio transfers|Contract modifications and portfolio transfers]] ====
* When contract terms change: derecognize or continue?
* When contract terms change: derecognize or continue?
* The criteria and consequences of modification
* The criteria and consequences of modification
* Portfolio transfers: measuring at the transaction date
* Portfolio transfers: measuring at the transaction date


=== [[Internal:Training/IFRS17/Transition to IFRS 17|Transition to IFRS 17]] ===
==== [[Internal:Training/IFRS17/Transition to IFRS 17|Transition to IFRS 17]] ====
* The full retrospective approach: the gold standard
* The full retrospective approach: the gold standard
* The modified retrospective approach: practical approximation
* The modified retrospective approach: practical approximation
* The fair value approach: when history is unavailable
* The fair value approach: when history is unavailable


=== [[Internal:Training/IFRS17/Presentation, disclosure, and interpretation|Presentation, disclosure, and interpretation]] ===
==== [[Internal:Training/IFRS17/Presentation, disclosure, and interpretation|Presentation, disclosure, and interpretation]] ====
* How IFRS 17 numbers appear in published financial statements
* How IFRS 17 numbers appear in published financial statements
* Key disclosure requirements
* Key disclosure requirements

Latest revision as of 01:35, 1 April 2026

🎯 Introduction. This training program takes you from first principles to a complete understanding of IFRS 17, the international accounting standard for insurance contracts. Each page builds on the last, starting from the most basic notions and adding complexity one step at a time. No prior knowledge of insurance or accounting is assumed. By the end, you will be able to read, interpret, and work with IFRS 17 financial statements with confidence. Click to explore the training.

Why insurance exists

  • Uncertainty and risk
  • Pooling as a solution
  • The role of the insurer

The economics of an insurance contract

  • Anatomy of a premium
  • The timing mismatch and the time value of money
  • Where profit comes from

What is accounting and why it matters

  • The purpose of accounting: who needs it and why
  • The balance sheet and the income statement
  • Key principles: recognition, measurement, and matching

Accounting for an insurer

  • The insurer's balance sheet: reserves as the dominant liability
  • The insurer's income statement: premiums, claims, and expenses
  • The hard questions: when is revenue earned, how do you value an uncertain promise?

Why insurance broke global standards

  • Different countries, different answers
  • IFRS and the promise of one global language
  • IFRS 4 as a temporary compromise and why IFRS 17 was needed

The building blocks: overview

  • The idea of decomposing a liability into transparent pieces
  • The four components at a glance: FCF, discounting, RA, CSM
  • How the building blocks solve the problems of the old world

Fulfilment cash flows

  • Which cash flows to include
  • The contract boundary
  • Probability-weighted estimates and keeping assumptions current

Discounting

  • Why discounting is essential for insurance liabilities
  • Choosing the discount rate: top-down vs. bottom-up
  • How discounting affects the liability over time

The risk adjustment

  • What the risk adjustment represents
  • How to measure it: confidence levels, cost of capital, VaR
  • How the risk adjustment releases as risk expires

The contractual service margin

  • What the CSM represents: unearned profit locked away on day one
  • How the CSM absorbs changes in estimates
  • How the CSM releases into revenue: coverage units

Grouping contracts

  • Portfolios: contracts with similar risks
  • Profitability groups: separating profitable from onerous
  • Annual cohorts: why contracts issued more than a year apart must be separated

The general model: initial recognition

  • Day one: measuring the four building blocks
  • Profitable contracts: CSM is positive
  • Onerous contracts: CSM is zero, loss recognized immediately

The general model: subsequent measurement

  • Passage of time: unwinding discount, releasing RA, releasing CSM
  • Changes in estimates: future service adjusts CSM, current/past service hits P&L
  • Claims incurred, settled, and derecognition

The income statement under IFRS 17

  • Insurance revenue: not premiums, but service delivered
  • Insurance service expenses and the insurance service result
  • Insurance finance income/expense and the OCI option

The premium allocation approach

  • When PAA is available: the eligibility test
  • How PAA works: simplified measurement
  • What you keep and what you skip vs. the general model

The variable fee approach

  • What are direct participating contracts
  • The variable fee concept: how VFA modifies the general model
  • Scope and the three eligibility criteria

Reinsurance held

  • Reinsurance as the mirror image: the insurer is the customer
  • Key asymmetries: day-one gains and loss recovery
  • Proportionate vs. non-proportionate reinsurance

Contract modifications and portfolio transfers

  • When contract terms change: derecognize or continue?
  • The criteria and consequences of modification
  • Portfolio transfers: measuring at the transaction date

Transition to IFRS 17

  • The full retrospective approach: the gold standard
  • The modified retrospective approach: practical approximation
  • The fair value approach: when history is unavailable

Presentation, disclosure, and interpretation

  • How IFRS 17 numbers appear in published financial statements
  • Key disclosure requirements
  • Reading IFRS 17 reports as an analyst or stakeholder
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