Insurance Insights - May 2017

Insurance Insights - May 2017

A collection of KPMG's latest publications and articles which focus on developments in, and issues facing the insurance industry.

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IFRS 17

In February, the IASB addressed issues arising from the feedback it received from the external testing and drafting process of the forthcoming insurance contracts standards (draft IFRS 17). Read Making the finishing touches.

Lessons for the future: Preparing for IFRS 17 focuses on the key lessons, questions and next steps for insurers to consider for IFRS 17 implementation.

Insurance Webcast Series:

We recommend listening to the recordings in order to hear the overlay from the presenters, rather than looking at the slides without commentary.

Increase to insurance liabilities

EIOPA publishes revised UFR methodology

On 5 April, EIOPA published its new methodology that will be used to derive the Ultimate Forward Rate (UFR) from January 2018.

The UFR is determined as the sum of a long-term interest rate plus the (country specific) inflation target long term inflation rate. The discount rate curve used in the calculation of technical provisions uses observable market data as far as possible (known as the last liquid point) and then extrapolates from that point to the UFR.

Recalculation of the UFR as a concept has not been universally accepted, with many arguing that the view on long-term interest rates should not be subject to regular change. By basing the long-term interest rate assumption on the average of annual observed real rates since 1961, this effectively means the UFR will be subject to annual revisions, albeit with a 15 basis point cap.

Read more about EIOPA and the UFR.

Invitation to participate in Global KPMG International fintech benchmarking initiative

As a valued client of KPMG in Ireland, we invite you to participate in a short online survey focused on fintech and innovation practices and trends in the banking/insurance/investment management industry. The goal of this ‘first of its kind’ survey is to help you better understand how you compare with your local and international peers, as well as gain deeper insights into the industry to help shape your strategies and approach to market. The survey results will be used for analysis purposes only, and available in aggregate form in a comprehensive report to launch September 2017.

We would be grateful if you could complete the survey, which will remain open until 19 May 2017. This survey should take no more than 15 minutes to complete. You can access the survey here.

Thank you in advance for your time and insights.

Plan ahead - be Brexit ready

KPMG's Head of Brexit, Brian Daly, says having a plan in place will help businesses manage the challenges and opportunities Brexit will bring. Please read Plan ahead - be Brexit ready.

Our KPMG Tax App, KPMG Website and Article 50 edition of Brexit in the Boardroom expands on these and other Brexit related topics. The Irish Government recently issued an information booklet entitled “Brexit: Ireland's Priorities”, which outlines its main priorities and concerns ahead of the Brexit negotiations.

We will continue to share with you important matters as they happen.

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