This paper examines what it means for the three lines of defense (development testing, validation, and audit) to work together on IFRS 17 implementation. Two common misconceptions are that they are three versions of the same activity and operate separately from each other.
We describe why both of these assumptions are incorrect, and focus on how the work of the second line, validation, serves as the linchpin that maximizes the value of the total effort.
To minimize the risk of error and maximize the use and cost of scarce resources, we encourage insurers to undertake the following initiatives early in their IFRS 17 development process:
Insurance Risk Management Leader, PwC United States
Tel: +1 (646) 471 4400
Jules Krijgsman van Spangenberg
Actuarial Senior Manager , PwC Netherlands
Tel: +31 088 792 6711
Manager, Actuarial Services, PwC United States
Tel: +1 (212) 617 8471