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Article Title: AXIS and IFRS 17
Article Type: General Actuarial  
Article ID #: 1555
GGY Contacts: GGY Client Support (416-250-6777)
Last Modified: 21 Aug 17

Article Summary:

A new International Financial Reporting Standard for Insurance (IFRS 17) has been under development for a number of years. The final standard was published in May, 2017 and will be effective for the 2021 reporting year.

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Article Detail:

On May 18, 2017 the International Accounting Standards Board (IASB) published the final draft of the IFRS 17 accounting standard, along with several supporting documents of guidance and illustration. This new accounting framework will impact the insurance industry around the world and will become effective for the 2021 reporting year.

 All of our AXIS clients in Canada, Europe and Asia Pacific will be impacted by IFRS 17 along with select US clients with parent companies or subsidiaries based outside the US. We have been following the developments in this project since its inception, anticipating the additional functionality that will be required to satisfy the standard. With the release of the final standard, we are assessing the full impact of its implementation on our clients to determine not only how AXIS will need to be further enhanced but also what other components are needed for a full IFRS solution for insurers.

How will Moody’s Analytics support IFRS 17 and 9?

The IFRS 17 standard applies a principles-based approach which will require interpretation which may evolve differently in different markets. We plan to provide full support for the new requirements, with much of the functionality required in AXIS already available.

 AXIS will fully support:

  • The application of IFRS 17 and IFRS 9 to life insurance, annuity and disability products for both the calculation of current date accounting liabilities and the projection of those liabilities over future periods;
  • The application of IFRS 9 for both the calculation of current date asset values corresponding to investments held by life insurers, and the projection of those asset values over future periods;
  • The derivation of appropriate amounts of revenue, profit or loss, and other comprehensive income for the current reporting period and for projecting future financial statements reflecting IFRS 17 and IFRS 9;
  • Analytics and disclosures relating to the above calculations as may be required for public or management reporting.

Further Communication Regarding our Plans to Support IFRS 17

On August 3, 2017, Moody’s Analytics presented a Webcast to provide AXIS clients with a high level summary of the important elements of IFRS 17 and our plans to support them in AXIS, and to outline additional business solutions relevant to IFRS 17 that Moody’s Analytics expects to develop. To view a recording of that webinar or access other IFRS 17 information, please visit our website: www.ggy.com/Client-Content/News/IFRS-17/

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