What will IFRS 17 mean for Singapore insurers?

To what extent will the new standard for insurance contracts change current practices?

It is a major overhaul

It will affect just the financial statements

It will affect only actuarial models

It is a minor accounting change

What is the goal of IFRS 17?

To achieve global consistency and comparability in accounting practices

To bring Asian accounting into line with US accounting

To remove the many different domestic treatments for insurance contracts

To reduce complexity in accounting for insurance contracts

What is one of the principle changes in the new accounting rule?

It will use historical market values

It will use up-to-date information

Reporting of profit in line with cash flow

Not allowing for risk adjustment

What impact is expected on insurers because of the key changes?

Investors will not understand the new figures reported

Future cashflows will be based on historical locked-in values

Revenue figures will look very different because expected losses must be accounted for

Share prices may fall as a result of the changes

What is expected to particularly affect Singapore insurers?

Grouping together profit- and loss-making contracts will be new

Using locked-in assumptions is new

The use of current measurement information is new

The valuation method and profit recognition will be new

An investment component is deemed to be distinct if -

Non-insurance goods and services obligations are provided together

Embedded derivatives are grouped together

The investment and insurance components are highly interconnected

An equivalent contract is or could be sold separately

What is one of the biggest question marks over IFRS 17?

It is too complicated

It will require significant judgment on application

It is a lower quality standard

It is too diverse

What will be one of the biggest challengers for insurers in Singapore?

Defining embedded value information

Defining current gross premium valuation method

Using the risk-free rate

To define discount rates that reflect the characteristics of liability cashflows

Why do mixed length products pose a challenge for Singapore insurers?

Because long-term contracts allow smoothing of profits

Because they are no longer allowed

Because the profits measurement treatment is different

Because only Singapore insurers offer them

What should insurers prioritise despite the rule not taking effect until 2021?

Call in advisers

Conduct financial and operational impact assessments

Update current system and processes

Inform investors of potential change in reported figures

What will IFRS 17 mean for Singapore insurers?

To what extent will the new standard for insurance contracts change current practices?

What is the goal of IFRS 17?

What is one of the principle changes in the new accounting rule?

What impact is expected on insurers because of the key changes?

What is expected to particularly affect Singapore insurers?

An investment component is deemed to be distinct if -

What is one of the biggest question marks over IFRS 17?

What will be one of the biggest challengers for insurers in Singapore?

Why do mixed length products pose a challenge for Singapore insurers?

What should insurers prioritise despite the rule not taking effect until 2021?

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What will IFRS 17 mean for Singapore insurers?

To what extent will the new standard for insurance contracts change current practices?

What is the goal of IFRS 17?

What is one of the principle changes in the new accounting rule?

What impact is expected on insurers because of the key changes?

What is expected to particularly affect Singapore insurers?

An investment component is deemed to be distinct if -

What is one of the biggest question marks over IFRS 17?

What will be one of the biggest challengers for insurers in Singapore?

Why do mixed length products pose a challenge for Singapore insurers?

What should insurers prioritise despite the rule not taking effect until 2021?

You scored

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out of

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Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

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Our sites

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Using this site

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Planned system updates