PAA RI held calculator is a tool (developed in MS Excel environment) to measure the Asset for Remaining Coverage and Asset for Incurred Claims by the Premium Allocation Approach (PAA) based on the requirements of the new international accounting standard IFRS 17 and our experience with its implementation.
The calculator is open so the user can go through the whole calculation step by step without any restraints.
Key benefits of our solution:
- Help to understand the full data request and workflow for IFRS 17 – input data, measurement, accounting, reporting and output data for DWH
- Able to process premium allocation approach for multiple groups of reinsurance contracts held and help you to produce financial results on your own data in an understandable MS Excel file.
- Able to process two sets of inputs (IFRS 17 terminology, UPR approach) based on your selection for each portfolio. IFRS 17 terminology uses inputs such as RI premium paid or allocation of RI premium. UPR appoach uses inputs such as RI share on gross written premium, RI share on unearned premium reserve or deferred RI commissions which are familiar and well defined in insurance systems so it makes IFRS 17 implementation simpler.
By this calculator, you are able to measure the Asset for Remaining Coverage and Asset for Incurred Claims for any intra-year period (1-12 months, i.e. any monthly, quarterly, half-yearly or annual reporting is possible) using a year-to-date basis and monthly, quarterly or annual input data.
After execution of the calculation, you can display the Statement of Financial Position, the Statement of Financial Performance and Reconciliation tables required by the Standard. You can easily choose at which granularity / detail you want to see the IFRS 17 results (portfolio, cohort, group of reinsurance contracts held).
If you are interested in how the IFRS 17 principles should be reflected in your general ledger, you can also display journal entries based on a predefined chart of accounts and accounting scheme.
Both input data and output data used for preparation of reports and journal entries are in database form so you can identify which data you will need to store. You can use this database as a source for another system / tool.
The calculator is primarily developed to support IFRS 17 implementation process, but it could be also used for real-life calculations.
It is not a black box and it can be easily customized by your needs – you can do it yourself or we can provide you with our support.
The tool could be used separately as a stand-alone calculator. Or if you need a more complex solution it can be a part of our IFRS 17 Cube solution (see link below).
We have also other IFRS17 tools. For further information follow the link to each tool:
IFRS17 GMA proxy calculator - link
IFRS17 PAA 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 client 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.
If you have any questions please use the contact form below.