Implement IFRS 17 seamlessly with Addactis and Volada AG
On May 28th, 2018, VOLADA, published a Press Release regarding the implementation of IFRS 17 in insurance companies.
In close cooperation with insurance clients, addactis® adapts the processes and methods to the specific requirements of IFRS 17 within its addactis® software. Hence, insurers using the addactis® software will continue to meet international accounting standards going forward.
Volada AG
Volada AG was founded in 2016 in Zug, Switzerland and offers actuarial software and service solutions in collaboration with ADDACTIS®. Volada uses state-of-the-art actuarial methods to support its customers in optimising their business processes.
Why consider Addactis and Volada AG ?
The implementation of IFRS 17 has significantly transformed reserving and accounting guidelines. Within addactis® IBNRS®, insurance contracts are measured using either the Building Block Approach (BBA) or the simplified Premium Allocation Approach (PAA). The valuation of reserves is based on portfolios that combine insurance contracts with similar risk profiles, distinguishing between profitable, potentially onerous, and onerous contracts. addactis® IBNRS® projects future cash inflows (e.g., premiums) and outflows (e.g., claims and expenses) at the portfolio level and can aggregate these cash flows to higher consolidated levels associated with diversification effects.
The adjustment for non-financial risks is based on the distribution of discounted future cash flows. In addactis® IBNRS®, this distribution is achieved using a variety of stochastic methods (Mack’s bootstrap, stochastic parametric distribution, Reversible Jump Markov Chain Monte Carlo – RJMCMC, etc.). Value at Risk, Tail Value at Risk, and Cost of Capital methods are available as options for calculating the Risk Adjustment along with their corresponding confidence levels. When applying the BBA, addactis® software also determines the Contractual Service Margin (CSM) at the level of definable Units of Account (UoA). In this process, estimates are produced for Liabilities for Remaining Coverage and Incurred Claims.
This comprehensive and adaptive capability of addactis® IBNRS® to manage the complexities of IFRS 17, combined with the expertise of Volada AG, provides insurers with the necessary tools to comply with regulations and optimize their reserve and risk management.
Volada AG and Addactis: Your companions on the path to actuarial excellence and compliance. Discover how we can streamline your business processes today! Know more on : Welcome to addactis website | The RiskTech for Insurance or Volada
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