{"id":354131,"date":"2019-07-02T18:53:00","date_gmt":"2019-07-02T22:53:00","guid":{"rendered":"https:\/\/www.cia-ica.ca\/news\/la-commission-directrice-sur-la-norme-ifrs-17-vers-une-transition-sans-heurts\/"},"modified":"2024-10-02T09:14:00","modified_gmt":"2024-10-02T13:14:00","slug":"la-commission-directrice-sur-la-norme-ifrs-17-vers-une-transition-sans-heurts","status":"publish","type":"news","link":"https:\/\/www.cia-ica.ca\/fr\/news\/la-commission-directrice-sur-la-norme-ifrs-17-vers-une-transition-sans-heurts\/","title":{"rendered":"La Commission directrice sur la norme IFRS\u00a017\u00a0: vers une transition sans heurts"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Cet article a \u00e9t\u00e9 publi\u00e9 initialement dans l'(e)Bulletin de l\u2019ICA.<\/em><br><br><strong><em>Par Cynthia Potts (FICA) et Les Rehbeli (FICA), copr\u00e9sidents, Commission directrice sur la norme IFRS&nbsp;17<\/em><\/strong><br><br>The implementation of IFRS 17 will have a significant impact on the valuation of insurance contracts. Coordination among CIA entities is paramount to ensure proper management and implementation of the necessary changes related to IFRS 17 in Canada. The IFRS 17 Steering Committee coordinates these efforts, and updates members frequently about IFRS 17. Read the committee\u2019s full&nbsp;mandate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Proposed amendments to IFRS 17<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In May 2019, the International Accounting Standards Board (IASB) issued an exposure draft with proposed amendments to IFRS 17 reflecting consideration of comments received from many parties (<a href=\"https:\/\/www.cia-ica.ca\/publications\/publication-details\/218125\" target=\"_blank\" rel=\"noreferrer noopener\">including the CIA<\/a>) about the substance, timing, and transitional requirements under IFRS 17. The International Insurance Accounting Committee (IIAC) will review the exposure draft and will coordinate CIA\/Actuarial Standards Board (ASB) comments in consultation with various CIA committees including the Committee on Property and Casualty Insurance Financial Reporting (PCFRC) and the Committee on Life Insurance Financial Reporting (CLIFR). Comments are to be provided to the IASB by September 25, 2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The proposed amendments include a deferral of the effective date for IFRS 17 from on or after January 1, 2021, to on or after January 1, 2022, as previously announced. You can view information about the&nbsp;<a href=\"https:\/\/www.ifrs.org\/projects\/work-plan\/amendments-to-ifrs-17\/\" target=\"_blank\" rel=\"noreferrer noopener\">remaining amendments<\/a>&nbsp;on the IASB website. Highlights were included in a recent presentation at&nbsp;<em>act19<\/em>, the CIA\u2019s annual conference, soon to be available in the&nbsp;<a href=\"https:\/\/www.cia-ica.ca\/publications\/other-publications\/proceedings\/annual-meeting\" target=\"_blank\" rel=\"noreferrer noopener\">Meeting Archives section<\/a>&nbsp;of the CIA website (log in required).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>CIA guidance on IFRS 17<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Summarized below is the CIA\u2019s approach to the development of IFRS 17 guidance:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Adopt international guidance as promulgated by the International Actuarial Association (IAA) as the main source of guidance.<ul><li>ISAP 4 will be incorporated into CIA standards of practice.<\/li><li>IAN 100 will be adopted as a CIA educational note.<\/li><li>Other IANs previously adopted by the CIA will be reviewed.<\/li><\/ul><\/li><li>Develop CIA guidance to supplement IAA guidance as needed.<ul><li>To provide Canadian-specific content (as the IAA does not address jurisdictional issues).<\/li><li>To address perceived gaps in IAA guidance.<\/li><\/ul><\/li><li>CIA guidance must not conflict with IAA guidance.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Several educational notes and research papers are being developed by CLIFR, PCFRC, and the Workers\u2019 Compensation Committee (CWC). Due process for approval of educational notes includes review and comment by other relevant CIA committees, approval by the Standards and Guidance Council, and translation to French. Given the importance and time-sensitive nature of IFRS 17, every effort is being made to expedite this process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The following tables summarize guidance being developed by CLIFR and PCFRC.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>CLIFR Guidance<\/strong><\/td><\/tr><tr><td><strong>Topic<\/strong><\/td><td><strong>Key Areas Covered<\/strong><\/td><td><strong>Est. Release<\/strong><\/td><\/tr><tr><td>Risk adjustment<\/td><td>PfAD and other quantification methodsCalibration of confidence level<\/td><td>Q3 2019<\/td><\/tr><tr><td>Future cash flows<\/td><td>Comparison to current practiceInvestment income tax (IIT) and other Canadian-specific topics<\/td><td>Q3 2019<\/td><\/tr><tr><td>Contractual service margin (CSM)<\/td><td>Typical amortizations for various Canadian productsTo be updated regarding final IFRS 17 exposure draft<\/td><td>Q4 2019<\/td><\/tr><tr><td>Discount rates<\/td><td>Ultimate rates and liquidity premiumsTransition from observed to ultimate<\/td><td>Q4 2019<\/td><\/tr><tr><td>Market consistent valuation<\/td><td>Canadian-specific observable periodsUltimate parameters (e.g., implied volumes) + transition<\/td><td>Q4 2019<\/td><\/tr><tr><td>Par contracts<\/td><td>Applicability of variable fee approach (VFA) methodDisclosure, otherTo supplement IIAC&nbsp;<a href=\"https:\/\/www.cia-ica.ca\/publications\/publication-details\/219036\" target=\"_blank\" rel=\"noreferrer noopener\">educational note<\/a><\/td><td>Q1 2020<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>PCFRC Guidance<\/strong><\/td><\/tr><tr><td><strong>Topic<\/strong><\/td><td><strong>Key Areas Covered<\/strong><\/td><td><strong>Est. Release<\/strong><\/td><\/tr><tr><td>Premium allocation approach (PAA) eligibility<\/td><td>Assessing eligibility for the simplified approach to the determination of liability for remaining coverage (LRC)Potential applicability to group insurance<\/td><td>Q3 2019<\/td><\/tr><tr><td>Expected loss ratio (ELR) for minimum capital test (MCT)<\/td><td>Practical application of guidance for MCT calculation where PAA is used to determine LRCUltimately to be incorporated in LRC educational note<\/td><td>Q3 2019<\/td><\/tr><tr><td>Discounting<\/td><td>Determination of discount rates (guidance being developed in conjunction with CLIFR)Practical application and illustrative examples relating to discounting and application to LIC<\/td><td>Q4 2019<\/td><\/tr><tr><td>Risk adjustment<\/td><td>Guidance in conjunction with CLIFRPractical application guidance and examples of quantile techniques, cost of capital, marginConfidence level disclosure<\/td><td>Q4 2019<\/td><\/tr><tr><td>Reinsurance<\/td><td>Contract boundary and PAA eligibility for risk-attaching treatiesAggregation, counterparty risk<\/td><td>Q4 2019<\/td><\/tr><tr><td>Liability for remaining coverage<\/td><td>TBD<\/td><td>TBD<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The CWC expects to issue a single comprehensive educational note, rather than single-topic notes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>IFRS 17 resources<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;<a href=\"https:\/\/www.cia-ica.ca\/professional-development\/ifrs-17-blog\" target=\"_blank\" rel=\"noreferrer noopener\">IFRS 17 blog<\/a>&nbsp;(log in required) is an excellent resource for members to stay current with efforts to implement the standard. Here are some of the most recent posts to the blog:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Update and next steps on OSFI\u2019s 2022 LICAT and MCT guidelines (June 27, 2019)<\/li><li>CIA comments on Exposure Draft of IAN 100 (May 23, 2019)<\/li><li>ISAP 4 Submission \u2013 Review and Comments (May 23, 2019)<\/li><li>\u201cTransition from CALM to IFRS 17 Valuation of Canadian Participating Insurance Contracts\u201d Draft Educational Note (March 29, 2019)<\/li><li>Q&amp;A: Financial Risk, Reinsurance, and Coverage Units (March 29, 2019)<\/li><li>Q&amp;A: Contract Boundary (March 19, 2019)<\/li><li>Other Q&amp;As on various life insurance and P&amp;C topics (January\u2013March 2019)<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Please note that the&nbsp;<em>act19&nbsp;<\/em>IFRS 17 session presentations will be added to the blog once they are available.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Click on \u201cLinks and Resources\u201d in the blog to find useful information, including documents issued by the IASB and IAA.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Cynthia Potts (FCIA) and Les Rehbeli (FCIA) are Co-Chairs of the IFRS 17 Steering Committee.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The implementation of IFRS 17 will have a significant impact on the valuation of insurance contracts. Coordination among CIA entities is paramount to ensure proper management and implementation of the necessary changes related to IFRS 17 in Canada.<\/p>\n","protected":false},"author":23331,"featured_media":0,"template":"","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"wicket_organization":""},"news-category":[308],"news-topic":[298],"class_list":["post-354131","news","type-news","status-publish","hentry","news-category-articles-fr","news-topic-assurance-individuelle"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.cia-ica.ca\/fr\/wp-json\/wp\/v2\/news\/354131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cia-ica.ca\/fr\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.cia-ica.ca\/fr\/wp-json\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/www.cia-ica.ca\/fr\/wp-json\/wp\/v2\/users\/23331"}],"wp:attachment":[{"href":"https:\/\/www.cia-ica.ca\/fr\/wp-json\/wp\/v2\/media?parent=354131"}],"wp:term":[{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/www.cia-ica.ca\/fr\/wp-json\/wp\/v2\/news-category?post=354131"},{"taxonomy":"news-topic","embeddable":true,"href":"https:\/\/www.cia-ica.ca\/fr\/wp-json\/wp\/v2\/news-topic?post=354131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}