IFRS 17 PAA Planning Tool

PAA Planning Tool is a tool (developed in MS Excel environment) to measure the PAA insurance and reinsurance contracts by IFRS 17 requirements over the planning period.

Key benefits of our current solution:

  • Help to understand the full data request and workflow for IFRS17 calculations
  • Able to process premium allocation approach projection and help you to produce financial results on your own data in an understandable MS Excel file

What should be measured by that?
IFRS 17 balance sheet:

  • Liability for remaining coverage by premium allocation approach (covering onerous contracts as well), and
  • Liability for incurred claims by the general model

IFRS 17 income statement

  • Insurance service result items
  • Insurance finance income or expense (including OCI)

Including both direct and ceded sides in one tool!

Calculation input data and logic:

LRC (direct business):

  • Calculation is performed based on the simple IFRS4 inputs: Premium, UPR, DAC, Combined ratio (loss and expense ratio)

LIC (direct business):

  • Calculation is performed based on the outstanding claims cash flow projections for the in force (existing) business and claim ratio and payment patern assumption for future new business
  • Tool performs discounting and OCI calculations

ARC/AIC (reinsurance held):

  • Calculation is perdormed based on the assumptions of the ceded ratios

Granularity of inputs/results:

Flexibility to define the granularity of inputs, Units of Account (UoA), and corresponding mapping to simplify input requirements to existing granularity of the Company

For analysis purposes results are visible for both the balance sheet and P&L items in:

⇒NB/EB granularity

⇒Per (product) level as defined by the Company

⇒Detailed Analysis of Movement

  • LRC/ARC: opening value, premium due, acquisition costs due, insurance revenue, amortisation of insurance acquisition cash flows (IASCF), closing value
  • LIC/AIC: opening value, opening value at a locked-in rate, unwind of discount, release, experience variance, change in operating assumptions, new claims, discounting effect, closing value at a locked-in rate, closing value

Complete control and documentation in one file:

Define reporting periods and then follow the calculator process

  1. Input data
  2. Calculation
  3. Database outputs
  4. Accounting and Reporting
  5. Actuarial analysis

Each of the process step is transparent and trackable

The tool could be used separately as a stand-alone calculator. Or if you need the more complex solution it can be a part of IFRS 17 Cube solution (see link below).

We have also other IFRS17 tools. For further information follow the link at each tool:

IFRS17 PAA calculator - link
IFRS17 PAA RI held calculator - link
IFRS17 GMA proxy calculator - link
IFRS17 Transition calculators - link
IFRS17 Cube solution - link
IFRS17 Add-ins - link
IFRS17 Eligibility tools - link
IFRS17 Illustrative models - link

We often support clients also directly as consultants. For further information about our IFRS17 services, please follow the link.

For further information about IFRS 17, see also our useful links.


Please contact us for further information!