By the end of the program, participants will be able to:
v Determine the technical reserves by applying deterministic and stochastic models.
v Understand the difference between the reserves for incurred claims under the existing standard IFRS 4 and the new standard IFRS 17.
v Interpret and determine the key elements introduced by IFRS 17: Risk adjustment, allocation, discounting, and diversification.
v Understanding the P&L and the Balance sheet under IFRS 17.
v Understand the types of reinsurance arrangements and the impact on the risk adjustments.
· Actuarial professionals working in general insurance
· Insurance finance and accounting professionals
· Risk officers and reserving analysts
· Regulators and auditors seeking to understand IFRS 17 implications
· Anyone involved in the implementation or oversight of IFRS 17 in non-life insurance
v Apply key reserving techniques used in non-life insurance, including both deterministic and stochastic models.
v Analyze the impact of IFRS 17 on reserving practices compared to IFRS 4.
v Identify and calculate key IFRS 17 components such as risk adjustment, discounting, and coverage obligations.
v Evaluate reinsurance arrangements and their influence on reserving and on the P&L.
Claims reserving is fundamental to the financial management of insurance companies. The selection of suitable reserving techniques is crucial to their operations. This module covers the non-life reserving concepts adopted in practice, starting with basic methods and progressing to more complex ones. We emphasize the impact of additional requirements of the new standard IFRS 17 on reserving methodologies.
Chapter 1:
· Introduction
Chapter 2:
· Reserving Techniques (Chain Ladder Method, Ultimate Loss Ratio Method, Bornhuetter-Ferguson Method, Frequency-Severity Method).
Chapter 3:
· Risk Adjustment for Non-Financial Risk Under IFRS 17.
Chapter 4:
· Reserve Discounting Under IFRS 17.
Chapter 5:
· Liability for Incurred Claims (LIC) Under IFRS 17
Chapter 6:
· Asset for Incurred Claims (AIC) Under IFRS 17.
Chapter 7:
· Liability for Remaining Coverage Under IFRS 17.
Chapter 8:
· Asset for Remaining Coverage Under IFRS 17.