Insurance companies are quite busy with IFRS17 and devote relatively little attention to IFRS9, its equivalent on the asset side. The complexity of this standard must however not be underestimated. If not only regular bonds, but also some banking products, appear on the balance sheet, IFRS9 poses quite some challenges.   Due to the great […]

In 2017, after more than two decades of debates, outreach and Exposure Drafts, the IASB finally published the new IFRS 17 standard for Insurance Contracts. Following additional years of further debates on several actuarial and accounting-related aspects the new standard will become effective on 1st January 2023 and fundamentally change the way on how many […]

During the past decade, supervised classification problems have been identified in several actuarial fields, such as risk management, projection modeling, fraud and anomaly detection, etc. In many of these problems, the respective classification task is subject to a highly imbalanced dataset, i.e., the number of instances of the relevant class is extremely small in comparison […]

These days, nobody disputes the profound impact and yet-untouched potential of Machine Learning and Artificial Intelligence anymore. Yet, in the actuarial sciences, these breakthrough possibilities are hampered by regulation, the need for numerical confidence and insight into model decision making, the latter being subsumed as a "black box problem". Thus, the quest for explainability is […]

The IASB issued 2017 the new comprehensive insurance accounting standard IFRS 17, with amendments issued in 2020. In addition to its general model, IFRS 17 introduces a modified approach, usually referred to as Variable Fee Approach (VFA), for a specific class of participating insurance contracts. Both the identification of such contracts and the application of […]

For an insurance company, ensuring the proper coordination between assets and liabilities in order to achieve targeted financial objectives is of paramount interest. A strategy used to reach such objectives is "asset and liability management" (ALM in short). ALM can therefore be viewed as any ongoing process that defines, implements, and monitors financial strategies to manage […]

For an insurance company, ensuring the proper coordination between assets and liabilities in order to achieve targeted financial objectives is of paramount interest. A strategy used to reach such objectives is "asset and liability management" (ALM in short). ALM can therefore be viewed as any ongoing process that defines, implements, and monitors financial strategies to […]

The debate on climate change has rapidly evolved in recent years. It is no longer on whether the evidence of human impact on climate change is real, but on whether key mitigating strategies being adopted are sufficient.   For insurance industry, climate change manifests itself through a variety of risks on the asset and liability […]

Up to 2022 additional financial reporting on sustainability has been done on a voluntary basis by insurance companies. The reporting companies, usually larger groups, regularly involve actuaries in the corresponding preparation of information. Early in 2022 relevant institutions have started to prepare concrete financial reporting requirements at European level, which will become mandatory for insurance […]