Case study: IFRS 17 Impact Study

The introduction of the new accounting standard IFRS 17 on insurance contracts will bring radical changes to the insurance business and accounting rules. The Italian insurance company needed support for developing simulation models in order to estimate the impacts of the introduction of the new accounting principle.


The client needed to acquire a good understanding of all the impacts of the implementation of IFRS 17 on all the products in its portfolio. For each product, it was necessary to assess the right approach to implementing the principle, with a very high level of contract granularity based on the product type/year of subscription rather than on the business line.


Working with two life and one non-life companies in the group, Mazars built up models (VFA model and General Model) able to simulate the main elements stated by the principle, such as expected future cash flows, Risk Adjustment or CSM, which impact the balance sheet and the business.


The models developed by Mazars allowed the company to understand the main impacts of the introduction of the IFRS 17 standard on both life and non-life business.