IFRS 17 - Insurance Contracts .pptx

1. Click to add text © 2014 IBM Corporation IFRS 17 – Insurance Contracts and Issues facing the Insurance Sector Presenter: Paul Young, CPA, CGA – Customer Success Manager - Architect Day: October 24, 2022

2. Click to add text © 2014 IBM Corporation Paul Young - Bio • CPA, CGA • Academia (PF1, FA4, FN2, MU1. and MS2) • SME – Risk Management • SME – Close, Consolidate and Reporting • SME – Public Policy • SME – Emerging Technology • SME – Business Process Change • SME – Financial Solutions • SME – Macro/Micro Indicators • SME – Supply Chain Management • SME – Data, AI, Security, and Platform • SME – Internal Controls and Auditing Contact information email: Paul_Young_CGA@hotmail.com LinkedIn: https://www.linkedin.com/in/paul-young-055632b/ SlideShare - https://www.slideshare.net/paulyoungcga Twitter: https://twitter.com/paulyoungcpa Youtube - https://www.youtube.com/user/youngercga1968/videos

4. © 2012 IBM Corporation Introductory • Any major standards will require detail planning. This presentation discusses IFRS17 which will be in full force by 2021. • 2021 may seen a long way off, but it will take companies a few years to align their processes to meet the new standard. September 9, 2014

5. © 2012 IBM Corporation What is IFRS 17 September 9, 2014 https://home.kpmg.com/xx/en/home/insights/2017/05/insurance- contracts-new-standard-first-impressions-ifrs17-ifrs4-180517.html or https://www.iasplus.com/en/news/2018/11/ifrs-17-effective-date

7. © 2012 IBM Corporation IFRS and FASB Source - https://www.ifrs.org/news-and-events/2017/11/what-investors-ask-about-ifrs-17/ September 9, 2014 The main exception relates to the United States. Under US GAAP, US insurers apply different requirements depending on the type of insurance contract they issue (for example, short-term insurance contracts or long- term insurance contracts). The US Financial Accounting Standards Board is working on a project to improve, simplify and enhance the financial reporting requirements for long-term insurance contracts issued by companies using US GAAP. Some of the proposed changes to US GAAP, if confirmed, are expected to reduce the differences between IFRS 17 and existing US GAAP, including the use of current assumptions. However, the two sets of requirements will remain different.

14. © 2012 IBM Corporation Feeder and Sub-Ledger Systems Source – Deloitte Inc - https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/financial-services/ch-fs- white-paper-ifrs-17.pdf September 9, 2014

22. © 2012 IBM Corporation Cybersecurity and Insurance All of which is further escalation of a worrisome trend: A recent report by Hiscox shows insured cyber losses of $1.8 billion in 2019, up an eye-popping 50% year over year. Facing the prospect of major financial fallout from an attack, C-suites around the world have turned to cyber insurance. Insurers are issuing more policies, and the amounts of protection available are increasing. In 2020, according to data proprietary to the team I lead, the global insurance community saw the first cyber insurance program to exceed $1 billion — and the second. However, the momentum that has propelled the sector this far may be running out. The cyber insurance sector may still be in its infancy, but there are signs that it is hit a (hopefully temporary) plateau. There are a few likely causes for this slowed growth. On the demand side, despite the spate of cyberattacks, some companies are buying less cyber insurance or not buying any at all, as economic strain from Covid-19 has caused some of them to look at cyber insurance as a luxury. And while more attacks could stimulate demand, they also create a supply problem, making insurers warier of providing cover and reinsurers (who provide insurance for insurance providers) less interested in backing cyber liabilities. On top of that, the lack of historical loss data (resulting from the sector’s short history) adds another layer of unpredictability for all involved. https://hbr.org/2021/01/cybersecurity-insurance-has-a-big-problem More and more companies are looking Data and AI solutions as part of mitigating issues with cybersecurity attacks: Security Products - https://www.ibm.com/security/products My work on small to medium-size businesses adoption of technology https://ibm.box.com/s/gddg93fwok0zx36ew41vpynz827qprvw ` September 9, 2014

23. © 2012 IBM Corporation Climate Change and Insurance September 9, 2014 Blog – Insurance and Climate Change Many people in Germany were blindsided by the heavy rains and deadly flooding that hit parts of the country in mid- July. Now, as homeowners take stock of the damage, a second shock could be in store when they take a look at their insurance policies. Homeowner's insurance in Germany covers water damage, but not if it's caused by heavy rains or natural flooding. For this, property owners need to purchase special coverage against weather damage. Such caveats, which aren't exclusive to Germany, pose problems in a world where unpredictable weather is becoming the norm. Higher global temperatures can lead to increased precipitation, making floods more likely, according to the United Nations Environment Programme. Insurance against severe weather is an "urgently needed" addition to standard homeowner's insurance, Sascha Straub, a finance lawyer working for a consumer consultancy in Bavaria, told DW. "The damage that water can cause is so immense that it can ultimately be a complete economic disaster for the individual," said Straub. "And now we see the likelihood that it will also affect those who haven't had to reckon with water before." Source - https://www.dw.com/en/how-do-you-insure-yourself-against-climate-change/a-58568248 Both the public and private sectors need to look at ways to mitigate the effects of climate through use of data, AI, Platform, and Security: Data and AI – https://ibm.box.com/s/6w39nl609pl1gv1p49lsp87fme7pjlwv Crisis and Emergency Management - https://ibm.box.com/s/rsp6p9tez8uru9fo0wu5d13bxt7rtrr0 Audit/GRC - https://ibm.box.com/s/noi1j6ixzl6ralxkm4g0zzs911wf6s76 Risk Management - https://ibm.box.com/s/256kgjvqjzt37st8gar9qyezhp3816b5 ESG Reporting - https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce

30. © 2012 IBM Corporation Insurance and Climate September 9, 2014 Blog – Weather Catastrophes drives record Insurance Losses - https://www.linkedin.com/pulse/blog-weather-catastrophes-drives-record-insurance- losses-paul-young/?published=t

32. © 2012 IBM Corporation Where does IBM Fit into IFRS 17 • Artificial Intelligence – Watson Analytics - https://www.ibm.com/ca- en/marketplace/watson-analytics • Planning Analytics - • Risk Analytics - https://www.ibm.com/blogs/insights-on- business/banking/ifrs-adoption-what-it-means-its-impact-and-best- practices/ • Cognos Analytics - https://www.ibm.com/support/knowledgecenter/en/SSEP7J_11.0.0/com.i bm.swg.ba.cognos.wig_cr.doc/c_gtstd_ica_overview.html September 9, 2014

IFRS 17 - Insurance Contracts .pptx

IFRS 17 - Insurance Contracts .pptx

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IFRS 17 - Insurance Contracts .pptx

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