Démo de 2 min : IFRS 17
Avec la nouvelle échéance qui approche, regardez cette vidéo pour voir comment CCH Tagetik peut vous aider à évaluer correctement le nombre de contrats d'assurance concernés selon les méthodes BBA, PAA et VFA grâce à un moteur de calcul et de reporting adapté.
Transcript
IFRS17 in CCH Tagetik allows insurance companies to meet regulatory principles for the recognition, measurement, presentation and disclosure of Insurance and Reinsurance contracts, effective in January 1st 2021.
Let's take a quick look.
From a process standpoint the standard requires integrating with multiple subsystems beyond the GL, such as the policy admin system or the actual system as often as required.
Once the data has been properly extracted and normalized at the unit of account level, the system will be processing the groups of contracts according to the BBA or PAA methodology, calculating important measures, such as the contractual service margin, the onerous contracts, the liability for incurred claims, or any other measure that the standard requires.
This data will be analyzed and investigated through the many analytical reporting capabilities of the CCH Tagetik solution and it will eventually be aggregated to the necessary level of granularity to be exported back to the GL or the data warehouse, or even the consolidation system for disclosure.
With a very intuitive interface, users will be getting visibility into their undiscounted and discounted cash flows, which will represent the main basis for the calculation of the present value of future cash flows, the risk adjustment for any risk other than financial risk, and also the contractor service margin for the unearned profits of the insurance premiums received, with clear indication of onerous liability in case of negative contractor service margins.
These 4 components represent in fact the 'Building Block Approach', which is actually the standard approach recommended by the IFRS 17 standard where at each measurement period included in issue recognition, it will be possible to analyze the cash flows, the risk adjusted, the service margin and the onerous liability for any of the individual evaluation periods.
Of course, for specific concepts which meets specific requirements the system also supports the abbreviated methods suggested by the IFRS17 standard, which is usually known as the Premium Allocation method and it will also allows to compare any unit of account between the BBA and the PAA approach at any point in time or at any measurement level.
