Course Overview

The IFRS 17: Insurance Contracts standard represents a major shift in insurance accounting, introducing a consistent and transparent framework for recognising, measuring, and reporting insurance contracts. It replaces previous approaches with a more structured model that enhances comparability across insurers and provides clearer insight into profitability, risk exposure, and financial performance.

The IFRS 17: Insurance Contracts Training course by Transformentors Academy is designed to provide a comprehensive understanding of these new requirements. Participants will explore the purpose and principles of IFRS 17, including contract boundaries, recognition criteria, and measurement approaches that fundamentally reshape insurance accounting practices.

The programme goes beyond theory by addressing practical application areas such as initial recognition, advanced measurement models (including the general model, premium allocation approach, and variable fee approach), and detailed disclosure requirements. It also covers transition methodologies to support organisations moving from previous standards to IFRS 17.

In addition, the course integrates IFRS 9 concepts, focusing on financial instruments relevant to insurers, expected credit loss (ECL) modelling, and updated hedge accounting requirements. This ensures participants understand how insurance liabilities and financial assets interact within financial reporting frameworks.

By the end of the course, participants will be equipped to interpret and apply IFRS 17 effectively, enhance financial reporting quality, and manage the complexities of insurance contracts in a compliant and strategic manner. This training is particularly valuable for insurance professionals, financial analysts, auditors, and compliance specialists aiming to stay current with evolving global accounting standards.

Agenda

Day — 1 Introduction to IFRS 17

• Defining IFRS 17: Insurance Contracts and its core objectives
• Reviewing the evolution of insurance accounting standards leading to IFRS 17
• Understanding the key principles and scope of IFRS 17
• Introducing the concept of insurance contracts under IFRS 17
• Assessing the importance of IFRS 17 for different stakeholders (insurers, investors, regulators)
• Comparing IFRS 17 with previous insurance accounting standards to highlight key changes

Day — 2 Recognition & Measurement of Insurance Contracts

• Understanding how to separate and combine components within insurance contracts (e.g., insurance, investment, and service components)
• Analysing the aggregation of insurance contracts into groups for measurement and reporting
• Determining the criteria and timing for initial recognition of insurance contracts
• Exploring key accounting approaches under IFRS 17:
  • General Measurement Model (GMM)
  • Premium Allocation Approach (PAA)
  • Modified approaches for specific contract types (e.g., Variable Fee Approach)
• Identifying and understanding the main components of the measurement model, including:
  • Fulfilment cash flows
  • Risk adjustment
  • Contractual service margin (CSM)

Day — 3 IFRS 17 Accounting Approaches

• Understanding initial recognition criteria and when insurance contracts are recognised under IFRS 17
• Distinguishing between key measurement approaches:
  • General Measurement Model (GMM)
  • Premium Allocation Approach (PAA)
• Understanding reinsurance contracts and contracts with:
  • Direct participation features
  • Discretionary participation features
• Analysing how contract modifications impact financial statements and measurement
• Understanding the principles of derecognition of insurance contracts
• Applying presentation and disclosure requirements under IFRS 17 in financial statements

Day — 4 Transition, Presentation & Disclosures

• Exploring transition approaches under IFRS 17:
  • Full retrospective approach
  • Modified retrospective approach
  • Fair value approach
• Analysing key challenges and practical considerations during the transition process
• Understanding presentation requirements in financial statements:
  • Statement of financial position
  • Statement of financial performance
• Distinguishing between qualitative and quantitative disclosures
• Identifying and explaining significant judgements applied in IFRS 17 implementation
• Describing the nature and extent of risks arising from insurance contracts

Day — 5 IFRS 9: Financial Instruments

• Exploring approaches used by insurers to align IFRS 9 with IFRS 17 adoption:
  • Overlay approach
  • Deferral approach
• Understanding the classification of financial assets and liabilities (amortised cost, FVOCI, FVTPL)
• Analysing the redesignation of financial assets upon transition to IFRS 17
• Applying the Expected Credit Loss (ECL) model for impairment under IFRS 9
• Reviewing key updates and principles in hedge accounting
• Summary & Lessons Learned:
  • Alignment between IFRS 9 and IFRS 17 is critical for insurers
  • Improved transparency in asset-liability management
  • Enhanced forward-looking risk assessment through ECL models

Learning Outcomes

By the end of the IFRS 17: Insurance Contracts training course by Transformentors Academy, you will be able to:

• Understand what IFRS 17 is, including its purpose and importance in modern insurance accounting
• Trace the evolution of insurance accounting standards and key developments leading to IFRS 17
• Apply recognition criteria and measurement approaches for insurance contracts
• Understand the accounting methodology under IFRS 17 and its impact on financial statements
• Analyse IFRS 17 transition approaches and their implications for financial reporting
• Apply presentation and disclosure requirements in compliance with IFRS 17
• Understand IFRS 9 requirements for insurance companies and distinguish between IFRS 9 and IFRS 17

Who Should Attend

This IFRS 17: Insurance Contracts course by Transformentors Academy is designed for professionals involved in insurance accounting, financial reporting, and regulatory compliance, including:

• Insurance professionals
• Accounting and financial analysts
• Financial managers and controllers
• Regulators and compliance officers
• Consultants and advisors
• Internal and external auditors
• Educators and trainers