The Committee on Life Insurance Financial Reporting (CLIFR) has prepared this educational note to provide information concerning the estimates of future cash flows in accordance with IFRS 17 requirements.
This educational note is structured into five sections. Section 1 introduces the content presented in this educational note. The second section highlights the differences between IFRS 4 and IFRS 17 with regards to estimates of future cash flows. Section 3 constitutes the main section of the educational note and presents general considerations related to estimates of future cash flows and specific actuarial assumptions. Section 4 presents considerations for cash flows that vary with assumptions related to financial risk. The fifth and final section discusses other miscellaneous topics.