Beyond Implementation: Strengthening Your IFRS 17 Pricing Model for the Long Term

By now, most insurers have completed their initial IFRS 17 implementation. The transition was a major milestone – aligning valuation, finance, and actuarial processes to meet the new reporting standard.

But the work doesn’t stop there. The real value comes in the “post-implementation” phase, ensuring your pricing models are not just IFRS 17-compliant, but also powerful tools for decision-making, product design, and sustainable growth.

1. From Compliance to Strategic Advantage

During the initial transition, the focus was on compliance:

• Making sure models reflected IFRS 17 measurement approaches.

• Aligning contract boundaries, coverage units, and discount rates with the standard.

• Producing the required disclosures accurately.
  

Now, with the compliance foundation in place, companies can shift their focus to leveraging IFRS 17 insights in pricing: embedding contractual service margin (CSM) projections and different IFRS 17 metrics, aligned with company KPI, directly into pricing output.

2. Why This Matters Now

A pricing model that supports IFRS 17 isn’t just about ticking regulatory boxes. It can:

• Improve speed to market by reducing manual reconciliations between pricing and valuation teams.

• Enhance decision-making by showing the impact of pricing decisions on future financial results and CSM trends.

• Support product development strategy in the new regime, where profit emergence patterns may differ significantly from the old accounting framework – enabling teams to design products that meet both commercial goals and financial reporting targets.
  

In competitive markets, especially where new business is a major driver, the ability to price quickly, accurately, and with IFRS 17 metrics in mind is a competitive edge.

3. Common Gaps We See in Post-Implementation Models

Even after IFRS 17 implementation, pricing models often:

• Rely on simplified approximations that diverge from valuation results.

• Lack integration with the valuation model, causing extra reconciliation work.

• Have slow run times due to complex cash flow projections or inefficient design.

• Allow too much manual intervention, increasing the risk of inconsistency.
  

4. The Actuarial Advantage

Actuaries play a critical role in this evolution:

• Translating IFRS 17 valuation concepts into practical pricing methodologies.

• Balancing technical accuracy with operational efficiency.

• Guiding cross-functional teams to ensure the pricing model is both a compliance tool and a growth enabler.
  

Conclusion: The IFRS 17 journey doesn’t end with go-live. The next phase is about ensuring your pricing model is robust, efficient, and aligned with valuation outputs, giving you both compliance confidence and competitive agility.

Want to strengthen your IFRS 17 pricing model? We can review your current setup, identify gaps, and help you build a model that supports faster launches, stronger governance, and better decisions. We also have our own proprietary IFRS 17 pricing model that can help with any reconciliation works with your own infrastructure.

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