Scope of the VFA in IFRS 17
Acturtle
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2y ago
The two main valuation approaches in life insurance for IFRS 17 are General Measurement Model (GMM) Variable Fee Approach (VFA). In this post, let's take a look at what the is and when it should be used. The VFA is a modification to the General Measurement Model ..read more
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R in actuarial reporting
Acturtle
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2y ago
I was recently discussing with a colleague if R is a useful programming language for actuarial reporting. We have found both: pros and cons. Below is our list. What are R’s strengths in actuarial reporting? R doesn’t allow for sweeping stuff under the rug. In Excel, you can easily have ..read more
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Actuarial cash flow model overview
Acturtle
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2y ago
When I started to work as an actuary, the was a kind of black box to me. It's good to have a general overview of such a model. Each model might be different, but below we present their main components. - data such as ..read more
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Fulfilment cash flows IFRS 17
Acturtle
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2y ago
IFRS 17 has introduced the concept of fulfilment cash flows. Fulfilment cash flows are the building blocks of the general model. Fulfilment cash flows consist of inflows and outflows, discounting and an explicit risk adjustment for non-financial risk. What remains after this calculation (if anything) is the CSM ..read more
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Subsequent Measurement IFRS 17
Acturtle
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2y ago
In this post, let's analyze the change in fulfilment cash flows over time and how these changes are reflected in the measurement of the insurance contract. IFRS 17 specifies different treatments for changes in fulfilment cash flows, depending on whether the change relates to future service or past and current ..read more
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Onerous contracts IFRS 17
Acturtle
by
2y ago
A positive CSM is released to the income statement over the coverage period. What about groups of insurance contracts that are , and therefore expected to be loss-making? In this post, we will consider three cases ..read more
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Measuring Contractual Service Margin IFRS 17
Acturtle
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2y ago
In this post, let's take a look at the initial and subsequent accounting for the Contractual Service Margin (CSM). We will focus on products Let's take an example of the a contract with a 3-year coverage period without any investment component ..read more
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Deterministic and stochastic models
Acturtle
by
2y ago
A lot of insurance companies have two types of cash flow models: . In this post, we will briefly describe how they differ and what they are used for. Let's briefly recap that insurance companies develop cash flow models to estimate liabilities of insurance products. Actuaries try ..read more
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Forward and spot rates
Acturtle
by
2y ago
The time value of cash flows has a material impact on actuarial modelling. The impact on life insurance is higher than the impact on non-life insurance. Life insurance policies are longer and ..read more
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Programming actuary
Acturtle
by
2y ago
combines skills from 3 areas: mathematics, economics and IT. The focus of this post will be on the last area - IT. I will share my view of which computer skills are the most important for actuaries. Actuaries combine skills from 3 areas ..read more
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