Revised Draft Educational Note: Comparison of IFRS 17 to Current CIA Standards of Practice

IFRS 17 specifies the basis for measurement (valuation) of insurance contract liabilities. While there are many similarities to the current CIA standards of practice for valuation of insurance contract liabilities, there are also many differences.

This educational note provides actuaries with an overview of the similarities and significant differences of IFRS 17 measurement of liabilities compared to current practice in Canada.

This draft educational note includes nine sections:

1. Introduction
2. IFRS 17 overview and comparison to current practice
3. Classification of contracts
4. Separation of contract components
5. Selection of measurement approach
6. Measurement considerations
7. Probability-weighted cash flows
8. Discounting
9. Risk adjustment for non-financial risk