IFRS-17.
com – Training and Consultancy
IFRS 17 in 17 Steps
A step-by-step guide for implementing IFRS 17 efficiently
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Steps
1. Project Initiation
2. Gap Analysis
3. Design & Planning “Success is a series of small steps, not
4. Data Requirements
5. Actuarial Modelling
giant leaps.”
6. System Selection Harvey Mackay
7. Process Design
8. HR Strategy
9. Parallel Run
10. Documentation
11. Audit Preparation
12. Go-Live Transition
13. Reporting Design
14. Regulatory Compliance
15. Stakeholder Communications
16. Ongoing Monitoring
17. Continuous Improvement
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1.
Phase Key Activities IFRS 17 References
• Establish cross-functional
governance
¶1-8 (Scope)
• Define decision protocols
¶14-24 (Portfolios)
Strategic Setup & for judgments
¶34-37 (Boundaries)
Contract Analysis • Classify contracts into
¶53-59 (PAA)
portfolios
¶70-72 (VFA)
Project
• Determine measurement
approach (PAA/VFA/GMM)
• Design CSM
recognition/amortization
model
• Develop risk adjustment ¶33-36 (Cash flows)
methodology ¶37 (Risk adjustment)
Measurement & Data
• Build discounting ¶44-45 (CSM)
Infrastructure
Initiation
framework ¶68-69 (VFA CSM)
• Map cash flow data ¶119-124 (Systems)
requirements
• Assess systems for CSM
tracking
• Structure financial
statement presentation ¶78-92 (Presentation)
Reporting & • Prepare disclosure ¶93-118 (Disclosures)
Implementation templates ¶C1-C30 (Transition)
Roadmap • Plan transition approach ¶125-129 (Sensitivity)
"A journey of a thousand miles • Conduct board education
• Align with auditors
¶130 (Board comms)
begins with a single step” – Lao Tzu
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2. Gap analysis is essential for IFRS 17
implementation because it systematically
identifies operational and technical
differences between current practices and the
new standard's requirements, enabling
Gap
insurers to prioritize resources, avoid costly
disruptions, and prevent financial
misstatements.
This assessment creates an actionable
roadmap to rebuild systems, refine data
Analysis
processes, and retrain teams—
transforming compliance into an opportunity
for enhanced financial transparency and
strategic performance management.
“You can’t manage what you can’t
measure” – Peter Drucker
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3. The design and planning phase for IFRS 17
turns your gap analysis into actionable
steps.
You'll make key decisions here—like
Design &
choosing risk adjustment methods, defining
CSM amortization rules, and designing
automated workflows. This is where you test
approaches through parallel runs and decide
whether to upgrade existing systems or
implement new actuarial engines.
Planning
Next, you lock down critical specifications:
finalize data pipelines, set disclosure
templates, and phase implementation across
teams. This creates a clear roadmap with
realistic deadlines, ensuring finance, IT, and
actuarial teams align before development
starts—turning regulatory complexity into
manageable execution.
“Plans are nothing; Planning is
everything” – Dwight D.
Eisenhower
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4. This phase focuses on transforming data
gaps into enforceable standards. You’ll
define how to source, validate, and store policy
data—like setting granularity levels for cohorts,
establishing data lineage rules, and choosing
Data
between centralized warehouses or distributed
systems. Crucially, you’ll decide how to handle
missing historical data and embed controls for
ongoing quality (e.g., automated anomaly
checks).
Next, you formalize these choices into
Policy
binding policies: document retention
timelines, access protocols for auditors, and
reconciliation thresholds. This creates a
scalable data governance framework
that prevents compliance fires—turning raw
information into auditable, decision-ready
insights aligned with IFRS 17’s demands.
“Data is the new oil” – Clive Humby
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5.
This phase reshapes your actuarial models to
handle IFRS 17’s core requirements. You’ll
decide how to calculate the Contractual
Service Margin (CSM)—determining profit
recognition triggers, risk adjustment
Actuarial
methodologies (like cost of capital or
confidence levels), and aggregation levels
(grouping similar contracts).
Crucially, you’ll validate model alignment
with the standard’s cash flow definitions and
optimize computational efficiency.
Modeling
Next, you formalize governance: set
validation rules for CSM amortization
patterns, define sensitivity testing scenarios for
risk adjustments, and document assumptions
for auditors. This transforms theoretical
standards into executable models that sync
with finance systems—ensuring liabilities are
measured consistently while supporting
“All models are wrong, but some dynamic disclosures.
are useful” – George Box
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6. System selection for IFRS 17 starts by
weighing existing capabilities against the
standard’s demands. Can your actuarial
software handle CSM tracking and risk
adjustments, or do you need new solutions?
System
Key criteria include scalability for cohort-level
processing, integration with finance systems,
automation potential, and vendor reliability.
Demand transparent calculation logic—no
"black box" systems.
This choice shapes your compliance backbone
Selection
for years. Prioritize platforms that automate
data flows between actuarial and finance
teams, eliminating error-prone spreadsheets.
The right system turns IFRS 17 complexity
into auditable, repeatable workflows—
not technical debt.
“The great growling engine of
change is technology” – Alvin
Taffler
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7. This phase turns technical requirements into
actionable workflows. You’ll map how data
flows from policy administration to actuarial
models, then to the general ledger—defining
Process
triggers for CSM amortization, reconciliation
checkpoints, and audit trails for every liability
movement. Critical decisions include: automating
journal entries, standardizing quarter-end closing
sequences, and embedding controls for data
validation (e.g., outlier detection in cash flows).
Design
The output locks in repeatable, audit-proof
processes. You’ll formalize handoffs between
actuarial, finance, and IT teams—eliminating
spreadsheets for critical steps—while designing
exception handling for scenarios like lapses or
assumptions changes. This creates a controlled
operational rhythm that turns regulatory
complexity into routine.
“Efficiency is doing better what is
already being done” – Peter
Drucker
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8.
This phase aligns talent with the
standard’s technical demands. You’ll
identify critical skill gaps—like IFRS 17
actuarial modelling, data governance expertise,
or system integration experience—and decide
HR
whether to hire specialists, upskill existing
teams, or partner with consultants. Crucially,
define clear ownership: assign accountability
for CSM calculations, data quality, and
disclosure outputs across finance, actuarial,
and IT teams to prevent responsibility gaps.
Strategy
Next, build retention and change
management plans. Structure training on
CSM mechanics and disclosure workflows,
create incentives for cross-functional
collaboration, and phase resource allocation to
avoid burnout during parallel runs. This
transforms your workforce from reactive
executors to proactive custodians of the new
standard.
“Culture eats strategy for
breakfast” – Peter Drucker
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9. This phase stress-tests your implementation
by running legacy and IFRS 17 systems
concurrently. You’ll execute calculations
(CSM, risk adjustments, P&L impacts) under
both frameworks using identical data sets,
Parallel
then rigorously compare outcomes. Key goals:
validate model accuracy, uncover hidden data
gaps, and calibrate transition adjustments for
Day 1 adoption. Expect resource intensity—
design efficient reconciliation workflows and
automate variance analysis to avoid
bottlenecks.
Runs
The results become your roadmap for final
fixes. Analyze material discrepancies to refine
models (e.g., adjust CSM triggers) or retool
processes before go-live. Successful parallel
runs build audit confidence while proving
operational readiness—turning theoretical
compliance into verified execution.
“Trust, but verify” – Ronald Reagan
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10. Continuous improvement activities require
systematic records of each
initiative’s rationale, implementation,
and validated outcomes. Central repositories
capture triggering events (e.g., 1.2% mortality
Documentation
drift), approvals, and pre/post KPIs, creating
auditable evidence of proactive governance.
Documentation evolves through version-
controlled updates, with automated pipelines
integrating changes into models and
disclosures. Quarterly reviews purge obsolete
content while archiving decisions, ensuring
real-time alignment with compliance maturity.
“What gets documented gets done”
– Mary Walton
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11. This phase ensures seamless auditor
engagement by proactively validating your
implementation. You’ll coordinate
walkthroughs of CSM models and controls with
external auditors before year-end testing—
Audit
demonstrating data lineage, reconciliation
workflows, and governance protocols.
Preemptively reconcile critical outputs (e.g., CSM
movements vs. transition adjustments) and
document decision rationales for key judgements
like risk adjustment methodologies.
Preparation
Rigorous dry runs refine responsiveness.
Simulate auditor requests—samples of policy
cohorts, cash flow projections, and journal
entries—to identify gaps in evidence chains.
Formalize a rapid-response protocol for inquiry
follow-ups, ensuring finance and actuarial teams
deliver consistent, audit-proof explanations. This
transforms scrutiny into a collaborative
refinement process.
“In God we trust; all others must
bring data” – W. Edward Deming
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12. Go-live transition executes the IFRS 17
cutover, shifting from legacy systems to new
processes with precision. At Day 1, final
transition adjustments book CSM and risk
Go - live
adjustments, while automated journal entries
activate between actuarial engines and the GL.
Real-time reconciliations and rollback
protocols ensure immediate issue resolution
during cutover weekend.
Post-cutover stabilizes operations with
Transition
rigorous controls. Daily monitoring of CSM
movements and P&L impacts—against preset
variance thresholds—detects outliers for rapid
review. Parallel shadow accounting runs for 1-
3 months fine-tune disclosures using live data,
embedding compliance into routine.
“Execution is everything“ – John
Doerr
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13. Reporting design creates IFRS 17
disclosure structures, defining granular
statement templates for insurance revenue,
CSM movements, and contract liabilities. It
maps actuarial outputs to financial
Reporting
statements—embedding hierarchies (entity →
cohort) and variance thresholds for automated
reconciliation.
Operationalization ensures audit-ready
outputs through pre-validated automation.
Dry-run disclosures test drill-down analytics
Design
and version control, transforming data into
precise, auditable regulatory reports.
“The art is not in making money,
but in keeping it” - Proverb
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14. Regulatory compliance embeds
automated oversight—continuously
validating CSM movements, risk adjustments,
and disclosures against preset thresholds. It
systematically archives data lineage and
Regulatory
governance approvals for audit readiness.
This evolves into strategic foresight:
Regulatory intelligence tracks emerging
interpretations to preemptively update models,
Compliance
while peer benchmarking refines disclosures.
Compliance transforms from obligation to
competitive clarity—building trust through
transparency.
“Compliance is a journey, not a
destination” – Ralph Waldo
Emerson
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15.
Stakeholder communications align
understanding across finance, actuarial,
audit, and leadership teams regarding
IFRS 17 impacts. Targeted updates translate
technical changes (e.g., CSM recognition,
Stakeholder
revenue timing) into business implications—
like earnings volatility or capital
requirements—using scenario-driven
narratives. Tailored materials (executive
Communications
dashboards vs. technical deep-dives) preempt
misinterpretations during each phase.
Continuity ensures sustained buy-in. Post-
implementation, escalation protocols rapidly
funnel issues from operations to steering
committees, while scheduled disclosures
(quarterly investor briefings, regulator pre-
submission walkthroughs) build confidence in
the new normal. Transparency turns
complexity into trust.
“The single biggest problem in
communication is the illusion that it
has taken place” – George Bernard
Shaw
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16.
Ongoing monitoring sustains IFRS 17
integrity through automated controls that
continuously validate data inputs, CSM
calculations, and output disclosures against
predefined thresholds (e.g., ±1% variance in
cohort-level insurance revenue). Real-time
Ongoing
dashboards track KPIs like reconciliation
errors or assumption drift, triggering root-
cause analysis for anomalies—ensuring
operational resilience beyond initial
implementation.
Monitoring
This evolves into continuous
improvement, leveraging monitoring
insights to refine models (e.g., updating lapse
rate assumptions quarterly) and preempt
regulatory scrutiny. Scheduled reviews—
actuarial model validation, audit committee
briefings—embed agility, transforming
compliance from static adherence to dynamic
business intelligence.
“What gets measured get managed”
– Peter Drucker
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17.
Continuous improvements elevate IFRS 17
compliance by systematically analyzing
monitoring data (e.g., model drift, stakeholder
feedback) to refine assumptions and automate
workflows—targeting ≥20% efficiency gains.
This embeds agility, turning compliance into
Continuous
operational leverage.
The practice evolves into predictive
innovation, anticipating regulatory shifts
through benchmarking and automating root
Improvement
causes (e.g., self-healing data pipelines).
Governance shifts to forward-looking
roadmaps, positioning compliance as a catalyst
for resilience.
“Continuous improvement is better
than delayed perfection” – Mark
Twain
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ideas deliver
development result
We listen to the ides of the clients, We adopt the design thinking
their problems and the regulatory philosophy and deliver the results in
environment. These ideas drive the small increments allowing the client
whole 17 step process for IFRS 17 to discuss internally, develop
implementation for the Company. prototypes and march forward with
confidence.
Development is collaborative and as We help client understand the
we go through the ideas, we develop results in a simple way and
the processes and solutions which implement these within the
are shared with the client. organization. We can work with the
training and operational teams to
validate the results.
process
The four steps
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THE MAKING OF [Link]
[Link] emerged from industry practitioners'
firsthand experience with inefficient adoption
processes. Recognizing the complexity insurers
face with IFRS 17 implementation – from data
architecture challenges to actuarial-finance
alignment – we developed a structured
methodology that transforms adoption from
overwhelming to manageable.
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services
What we offer
✓ Training in IFRS 17
✓ Strategy consultation
✓ Peer review of technical papers
“We offer training and consulting
✓ Actuarial modelling services around our 17-step
✓ Audit support and reviews methodology. This involves peer review
✓ Data Analytics and AI Integration of documents, data analytics, audit
reviews and actuarial aspects.”
✓ System Integration Support
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