Publicação
Analysis of shocks after the implementation of IFRS 17
| Resumo: | IFRS 17 is the new accounting standard that will be effective starting from 1st January 2023. After the publication of the standard, entities such as insurance companies, consultants and regulators have shown their concern regarding its implementation due to their complexity and how it will impact the preparation of disclosures and Financial Statements. But the worries not only lie on their application, also in their subsequently measurement and how future unexpected events will change the Financial Statements. The present internship report addresses the problem regarding the future shocks that the entities may face after implementing IFRS 17 and it is focused on onerous contracts on the life business. For its analysis, a sample of three products, PPR, Unit Linked and Whole Life Insurance were taken. The data was taken from one of the biggest Portuguese insurance companies. Considering it, three shocks have been assessed, increment in premiums, increment in mortality and increment in the interest rate. From the practical cases studied, it is possible to have as conclusion that the increment in premiums will change the Equity and Assets, the increment in mortality and interest rate will change the Equity and Liability sides, and the severity of the effects will depend on the particular characteristics of each product, which will be analysed and explained in a detailed way through the chapters of the present internship report. |
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| Autores principais: | Cuicapuza, Lizbeth Stefany Zavala |
| Assunto: | IFRS 17 Premiums Mortality Interest Rate Onerous Contracts Loss Component |
| Ano: | 2022 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | IFRS 17 is the new accounting standard that will be effective starting from 1st January 2023. After the publication of the standard, entities such as insurance companies, consultants and regulators have shown their concern regarding its implementation due to their complexity and how it will impact the preparation of disclosures and Financial Statements. But the worries not only lie on their application, also in their subsequently measurement and how future unexpected events will change the Financial Statements. The present internship report addresses the problem regarding the future shocks that the entities may face after implementing IFRS 17 and it is focused on onerous contracts on the life business. For its analysis, a sample of three products, PPR, Unit Linked and Whole Life Insurance were taken. The data was taken from one of the biggest Portuguese insurance companies. Considering it, three shocks have been assessed, increment in premiums, increment in mortality and increment in the interest rate. From the practical cases studied, it is possible to have as conclusion that the increment in premiums will change the Equity and Assets, the increment in mortality and interest rate will change the Equity and Liability sides, and the severity of the effects will depend on the particular characteristics of each product, which will be analysed and explained in a detailed way through the chapters of the present internship report. |
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