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IFRS 17: Deriving the confidence level for the Risk Adjustment: A case study for life (re)insurers

ByAlexandre Boumezoued, Amal Elfassihi, Cormac Gleeson, Andrew Kay, Orlaith Lehane, Bertrand Lespinasse, and Damien Louvet
11 November 2020

The IFRS 17 Risk Adjustment creates challenges for (re)insurers, such as how to determine the confidence level needed for disclosure purposes, and how to restate a given confidence level over different time horizons. This paper presents a solution to address these challenges and details a case study for a life company.

Below is an infographic that highlights the five key characteristics that can lead to a higher risk adjustment and the risk adjustment calculation techniques.


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About the Author(s)

Amal Elfassihi

Cormac Gleeson

Orlaith Lehane

Damien Louvet

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