What will IFRS 17 mean for Singapore insurers?

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

It will affect just the financial statements

It is a minor accounting change

It is a major overhaul

It will affect only actuarial models

What is the goal of IFRS 17?

To bring Asian accounting into line with US accounting

To achieve global consistency and comparability in accounting practices

To reduce complexity in accounting for insurance contracts

To remove the many different domestic treatments for insurance contracts

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

Reporting of profit in line with cash flow

Not allowing for risk adjustment

It will use historical market values

It will use up-to-date information

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

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

Investors will not understand the new figures reported

What is expected to particularly affect Singapore insurers?

The valuation method and profit recognition will be new

Using locked-in assumptions is new

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

The use of current measurement information is new

An investment component is deemed to be distinct if -

Embedded derivatives are grouped together

Non-insurance goods and services obligations are provided 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 will require significant judgment on application

It is too complicated

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

To define discount rates that reflect the characteristics of liability cashflows

Defining current gross premium valuation method

Using the risk-free rate

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

Because they are no longer allowed

Because the profits measurement treatment is different

Because long-term contracts allow smoothing of profits

Because only Singapore insurers offer them

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

Inform investors of potential change in reported figures

Update current system and processes

Conduct financial and operational impact assessments

Call in advisers

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

0

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

Related topics

Our sites

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Using this site

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Planned system updates