Moody's Corporation · NYSE:MCO
Moody's — Technical Presentation (September 2020)
23 slides from Moody's's technical presentation, September 2020
Slide 1: What's New in RiskIntegrity for IFRS 17?
What’s New in RiskIntegrity™ for IFRS 17? September 2020
Slide 2: Speakers
Speakers Moderator: Andrew Boddie, Director - Marketing Ann Law, Associate Director - Senior Product Manager Nitesh Aidasani Khyami, Associate Director - Product Manager What’s New in RiskIntegrity™ for IFRS 17? 2
Slide 3: Agenda
Agenda 1. What’s new in the RiskIntegrity for IFRS 17 solution? » Risk mitigation of derivatives under the variable fee approach (VFA) » Scalar approach to calculate the risk adjustment for the liability for incurred claims (LIC) » Controls and reconciliation » Disaggregation of insurance finance ex
Slide 4: What's New in the RiskIntegrity for IFRS 17 Solution?
1 What’s New in the RiskIntegrity for IFRS 17 Solution?
Slide 5: Risk Mitigation of Derivatives Under VFA
1.1 Risk Mitigation of Derivatives Under VFA
Slide 6: Risk Mitigation of Derivatives Under VFA
Risk Mitigation of Derivatives Under VFA Allows changes in financial risk in the Import the Delta_Hedge_Value at the entity's share of underlying items to be IFRS 17 group level on the Financial excluded from changes in the Assumptions Changes - Current contractual service margin (CSM) if the Servic
Slide 7: Scalar Approach to Calculate the Risk Adjustment (RA) for the LIC
1.2 Scalar Approach to Calculate the Risk Adjustment (RA) for the LIC
Slide 8: Scalar Approach to Calculate the RA for the LIC
Scalar Approach to Calculate the RA for the LIC No prescribed method for calculating the Prior to the addition of this feature, this Version 4.3 now offers a methodology for RA for the LIC was imported as a nominal value for each calculating the RA for the LIC step in the LIC roll forward 01 02 03 S
Slide 9: Controls and Reconciliation
1.3 Controls and Reconciliation
Slide 10: Controls and Reconciliation
Controls and Reconciliation RiskIntegrity for This feature was These screens perform We have also IFRS 17 contains introduced in automated controls in enhanced the user improved configuration RiskIntegrity for the accounting module, interface of the existing checks and IFRS 17 version 5.0 improving
Slide 11: Configuration Checks
Configuration Checks Intercept inconsistencies in the The Chart of Accounts There can be some These issues could occur configuration. For example, Warnings tab displays discrepancies that arise during when creating custom master verify that each custom warnings related to how mapping: account extens
Slide 12: Reconciliation Report
Reconciliation Report Shows a summary of the accounting module data in one place Allows accountants and auditors to view the accounting data used for the journal postings Lets you make any corrections before posting a journal Generated by the reconciliation process and shows a snapshot of data in ti
Slide 13: Reconciliation Report (continued)
Reconciliation Report (continued) Transaction – Journal check section: Group balance check section: This check verifies that all transactions have a This check verifies that the debits and credits of corresponding journal entry and all journal entries each IFRS 17 group balance out to zero. Since ha
Slide 14: Disaggregation of Insurance Finance Expense (IFE) for the LIC
1.4 Disaggregation of Insurance Finance Expense (IFE) for the LIC
Slide 15: Disaggregation of IFE for the LIC
Disaggregation of IFE for the LIC The IFRS 17 standard RiskIntegrity for IFRS 17 The choice is made at the This feature was allows insurance now provides these options portfolio level introduced in RiskIntegrity companies to choose how for the LIC method (direct for IFRS 17 version 5.0 they register
Slide 16: Disaggregation of IFE for the LIC (continued)
Disaggregation of IFE for the LIC (continued) There are three runs within the LIC roll forward where a change in the fulfillment cash flows is considered part of the financing cost and is posted to IFE LIC Opening P&L run – the opening LIC Financial Assumption P&L run – the opening Financial Assumpt
Slide 17: Disaggregation of IFE for the LIC (continued)
Disaggregation of IFE for the LIC (continued) The P&L rate represents the rate at which the liability cash flows are discounted to calculate amounts that are allocated to the P&L. The P&L rate can be one of the following: » Locked-in rate – B131 » Constant rate – B132 (a) (i) » Crediting rate – B132
Slide 18: RiskIntegrity for IFRS 17
y, RiskIntegrity for IFRS 17
Slide 19: RiskIntegrity for IFRS 17
y, RiskIntegrity for IFRS 17
Slide 20: RiskIntegrity for IFRS 17
y, RiskIntegrity for IFRS 17
Slide 21: Q&A
3 Q&A
Slide 22: Thank You
Thank You moodysanalytics.com
Slide 23: What’s New in RiskIntegrity™ for IFRS 17?
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