PAA calculator is a tool (developed in MS Excel environment) to measure the Liability for Remaining Coverage by simplified measurement model, Premium Allocation Approach, defined based on the requirements of new accounting international standard IFRS 17 and our experience with its implementation.
To have at disposal total carrying amount of insurance contracts according to IFRS 17 requirements, the calculator also includes measurement of the Liability for Incurred Claims by general measurement model. You are thus able to measure the carrying amount of insurance contracts at each monthly reporting period.
The calculator is open so the user can go through the whole calculation step by step without any restraints.
Key benefits of our current solution:
- Help to understand the full data request and workflow for IFRS 17
- Able to process premium allocation approach for multiple groups of insurance contracts and help you to produce financial results on your own data in understandable MS Excel file for the whole portolio measured by PAA.
- Able to process two sets of inputs (IFRS 17 terminology, UPR approach) based on your selection for each portfolio. IFRS 17 terminology uses inputs such as premium received or premium receipts allocated to current period. UPR appoach uses inputs such as gross written premium, unearned premium reserve, deferred acquisition costs or receivables which are famliar and well defined in insurance systems so it makes IFRS 17 implementation simpler.
After execution of the calculation, you can display the Statement of financial position, the Statement of financial performance and reconciliation tables required by the Standard. You can easily choose at which granularity / detail you want to see the IFRS 17 results (portfolio, cohort, group of insurance contracts).
If you are interested how the IFRS 17 principles should be reflected in your general ledger, you can also display journal entries based on predefined chart of accounts and accounting scheme.
Both input data and output data used for preparation of reports and journal entries are in database form so you can define which data you will need to store. You can use this database as a source for another systems / tools.
The calculator is primarily developed for real calculations, but you can also use it to support IFRS 17 implementation process – each of the process step is in detail explained and defined. The user does not need any additional documentation.
It is not a black box and it can be easily customized by your needs – you can do it by yourself or we can provide you with our support.
Watch our video demonstration.
The tool could be used separately as a stand-alone calculator. Or if you need the more complex solution it can be a part of IFRS 17 Cube solution (see link below).
We have also other IFRS17 tools. For further information follow the link at each tool:
IFRS17 GMA proxy calculator - link
IFRS17 PAA RI held calculator - link
IFRS17 Transition calculators - link
IFRS17 Cube solution - link
IFRS17 Add-ins - link
IFRS17 Eligibility tools - link
IFRS17 Illustrative models - link
We often support clients also directly as consultants. For further information about our IFRS17 services, please follow the link.
For further information about IFRS 17, see also our useful links.
If you have any questions please use the contact form below.