IFRS 17 set to present challenges for insurance companies

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. Which of these is NOT part of the Solvency II definition of a contract boundary?

  2. Which of these was not a known problem with IFRS 4 - the old standard?

  3. Which of these is the effective date of IFRS 17?

  4. Why is recognising profit over the term of the contract important?

  5. Which of these is not a valid grouping within an insurance contract portfolio?

  6. Why might the way IFRS 17 dictates the grouping of insurance contracts be particularly useful for investors?

  7. Contract grouping under IFRS 17 may present particularly complex challenges to life insurance companies. Which of these is not a factor increasing complexity?

  8. Why might companies need to speak with their stakeholders before they adopt and report using IFRS 17?

  9. Which of these financial metrics is not expected to change as a result of IFRS 17?

  10. In what situation might a company be exempt from determining contract groupings?