Tag Archives: Lamia Amouch

IFRS 17 Premium Allocation Approach considerations

International Financial Reporting Standard (IFRS) 17 is the biggest accounting change for insurers in many years. The new insurance contracts accounting standard also has actuarial implications. Under IFRS 17, detailed reserving outputs and granular analysis of change will be disclosed for the first time. Items such as discount rates and risk adjustment will have a direct impact on the reported profit in the accounts.

According to the International Accounting Standards Board, there is only one model, the General Model, insurance companies should use to value insurance contracts. The Premium Allocation Approach (PAA) is a simplification of this basis, which an entity may use as an approximation for measuring contracts over the remaining coverage period.

In this paper, Milliman’s Lamia Amouch, Laura Hobern, and Derek Newton present five key challenges that insurers will need to address when using PAA.

Have you made the Standard Formula yours?

Solvency and Financial Condition Reports (SFCRs) and Quantitative Reporting Templates (QRTs) show that UK non-life and health insurers are overall well capitalised. However, it appears that undertakings using the Standard Formula (SF) have not utilised all possible ways available to better reflect their risk profiles, thereby missing out on potentially reducing their Solvency Capital Requirements and improving their solvency ratios. Milliman consultants Vincent Robert and Lamia Amouch provide more perspective in their article “Have you made the Standard Formula yours?