Financial reporting, including International Financial Reporting Standards (IFRS)

PwC has developed an 'IBIS' (Impact, Business Implication and Solutions) toolkit which helps insurance companies embed and implement IFRS within their organizations, and identify and understand any IFRS implications, in order to meet the future needs of their business.

Potential issues

IFRS will compel insurers to:

  • Control profit volatility and manage stakeholders' expectations accordingly.
  • Maximize, measure, and monitor the profitability and pricing of new and existing products.
  • Control capital requirements, capital resources and solvency.
  • Review investment and hedging strategies.
  • Review ceded reinsurance strategies.
  • Understand and report on management information requirements.

How we can help

  • Promote understanding of the financial impact of moving to IFRS reporting.
  • Develop an implementation plan, including tasks, roles and responsibilities, resource requirements, and a timetable for implementation.
  • Develop the IFRS valuation methodology for insurance contracts, and distinguish between those contracts that do and do not meet the IFRS definition of insurance.
  • Perform a valuation of financial instruments and embedded derivatives to determine if any adjustments are necessary.
  • Build and run investment and stochastic models, and interpret the results in order to resolve uncertainties and complexities.

Our services

  • IFRS impact studies.
  • Assessment of existing actuarial/reserving systems.
  • Calculation of profit profiles for individual products.
  • Investment modeling.
  • Actuarial input on project governance.
  • Preparation of detailed groundwork and implementation instructions.
  • Help with training individuals involved in the implementation process.
  • Assistance with deriving assumptions.
  • Help with selecting appropriate units of account.
  • Help in dealing with potential business implications.
  • Assistance with establishing technical committees, including experts from within your company and our actuarial team.
  • Help in determining required adjustments to US GAAP.
  • Assistance in meeting reporting and disclosure requirements.