The Committee on Property and Casualty Insurance Financial Reporting (PCFRC) has prepared this educational note to provide guidance on various actuarial considerations related to work performed by actuaries for contract valuations and other obligations when compliance with IFRS 17 is not required.
This educational note will become effective on January 1, 2023, which corresponds to the effective date of IFRS 17.
This educational note is structured in sections as follows:
• Sections 1 and 2, respectively, provide an introduction and a definition of the terminology used in this educational note.
• Section 3 provides general comments on the valuation basis.
• Section 4 provides guidance related to discounting.
• Section 5 provides guidance related to margins for adverse deviations.
• Section 6 provides guidance related to premium liabilities.
The guidance provided in this educational note is mainly based on accepted actuarial practice in effect prior to the adoption of IFRS 17 along with application of suitable aspects of IFRS 17. It is written from the perspective of Canadian actuaries and is not intended to duplicate any other guidance.