Life insurers use a number of different reporting practices to inform their stakeholders: IFRS reporting, EV reporting and Solvency reporting. There is a strong tendency to market consistent valuation in each reporting practice. The different valuation methods and requirements underlying different reporting standards used by life insurers can be summarised as follows:

IFRS
The current IFRS requirements for measuring insurance liabilities are laid down in the IFRS 4 Phase I standard that was published in 2004. The IASB is currently developing an updated standard known as IFRS 4 Phase II. It is expected that the IASB will publish the final IFRS4 standard for insurers around May 2011. The updated accounting standard will consist of a full set of principles for the fair valuation of insurance liabilities.

EV
In June 2008, the CFO Forum has published its Market Consistent Embedded Value (MCEV) principles that replace the existing European Embedded Value (EEV) principles. From the end of year 2009, the use of MCEV will be compulsory for Europe’s largest insurers when calculating embedded values in their supplementary financial reporting.

Solvency II
The current solvency requirements for European insurers are defined by the Solvency I principles. Since the current determination of required capital is being considered as insufficiently risk-based, the European Commission has initiated the Solvency II project. It is expected that the Solvency II requirements will become mandatory as of 2012. Under Solvency II, the available solvency of insurers and insurance groups will be determined under the assumption that both assets and liabilities are measured on a market consistent basis.

During the seminar, the participants will not only be informed about the different reporting standards, but will also be made aware about challenges insurance companies will be facing once the new reporting standards become reality. During our presentations, we will provide practical cases that will help the participants to become more familiar with the presented topics and concepts.