Application of Actuarial Valuation Method in TFRS 17 Insurance Contracts Standard

Authors : Naim Varol

Pages : 169-202

Doi:10.25095/mufad.1778316

View : 27 | Download : 41

Publication Date : 2025-10-15

Article Type : Conference Paper

Abstract :IFRS 17 represents a comprehensive financial reporting standard that aims to enhance transparency, consistency, and comparability across the global insurance industry. The standard introduces a fundamental shift in the accounting of insurance contracts by requiring the discounting of future cash flows to present value, the explicit adjustment for non-financial risks, and the systematic recognition of unearned profits through the Contractual Service Margin (CSM). The implementation of IFRS 17 necessitates the use of actuarial measurement techniques in valuing insurance liabilities, significantly influencing both financial reporting and risk management practices. This study provides a detailed explanation of how actuarial techniques are applied within the three core measurement models of IFRS 17—the General Measurement Model (GMM), the Premium Allocation Approach (PAA), and the Variable Fee Approach (VFA)—through an illustrative example. Furthermore, it examines the crucial roles of actuaries in model development, assumption setting, risk adjustment measurement, and CSM amortization, offering a comprehensive perspective on the practical implementation of the standard.
Keywords : Sigorta Sözleşmeleri, Aktüeryal Değerleme Yöntemi, Genel Ölçüm Modeli, Prim Dağıtımı Yaklaşımı, Değişken Ücret Yaklaşımı

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