From January 22 to 26, the EAA – European Actuarial Academy GmbH will present a follow-up edition of its EAA Weeks and last year’s EAA Days: the EAA Days 2024.
During these days, the EAA will publish once again 5 high-profile webcasts on trending actuarial topics with high-class speakers from all over Europe:
- Monday:
„Investment Components and Other Non Service Payments“
Stefan Engeländer
The IASB issued 2017 the new comprehensive insurance accounting standard IFRS 17, with amendments issued in 2020. In line with IFRS 9, IFRS 17 does not permit to present receipts and repayments of deposits, in IFRS 17 referred to as investment components, in P&L. In general, all payments which do not represent the provision of services are excluded from presentation in P&L. The identification of such payments requires judgment and the proper exclusion of those amounts from P&L is a challenge for the accounting systems. … read more - Tuesday:
„How Visualization and Computer Science (AI) Could Support Pension Funds“
Dr Ljudmila Bertschi, Dr Mauro Triulzi
The supreme body of the pension fund (board of trustees) is responsible for the overall management of the pension fund. The non-transferable and inalienable duties of the supreme body include the following tasks among others: the setting of the financing system and comprehensibly designing, monitoring, and controlling the asset management to improve the returns and benefits for the members of the pension fund. Since being a member of the board of trustees is not a full-time job, the scope of duties is enormous: meeting the aforementioned legal requirements requires a lot of time and expertise. Pension fund accredited actuaries, investment consultants, auditors as well as pension fund management teams should fully support the board of trustees to make proper decisions. … read more - Wednesday:
„IFRS 17: The Variable Fee Approach – Basics and Challenges“ (2 parts)
Stefan Engeländer
Starting from the revenue recognition concepts of fee-based services, we will discuss the qualification criteria of IFRS 17 for the VFA. Basis are certain contractual features, including the identification of the underlying items belonging to the contract. Further conditions need to be met to qualify insurer’s share in the surplus as (variable) fee. Other contractual features like inheritance and mutualisation may add complexity to the measurement of the cash flows under a contract and their effect will be explained. Changes of the overall variable fee expected to be received under the insurance contracts influence the subsequent measurement of the Contractual Service Margin, the key difference of the VFA to the general model. The explanation of those differences will be the main part of the afternoon. However, the web session cannot focus on consequences and solutions for specific jurisdictions. … read more - Thursday:
„Notional Funding: How an Imaginary Pension Fund Can Help Steer a PAYG System“
Ismo Risku
The aging population presents serious challenges for traditional pay-as-you-go pension systems. Longer life expectancies increase pension expenses while low birth rates weaken the future contribution base. A buffer fund can help alleviate these problems. However, this raises questions about how much insured should contribute and how big the fund should be. Ideally, the contribution rate should be stable, but it also needs to be based on observable quantities and transparent rules. Notional funding (NF) provides a coherent solution to this problem. It takes the liabilities of the PAYG system as seriously as those of the funded system. In NF, the PAYG system is treated as if it were a fund-ed system without assets to cover liabilities. … read more - Friday:
„Experience-Based Insights & Trends in Asset Management“
Roland van den Brink
The goal of this online web session is awareness of theory versus investment experiences. The course discusses ‘obvious’ shortcomings, like the fact that we trust models more than human experience, we rely on the figures from the past instead of the future, we think in % instead of €, we weigh loss more than profit, and we use High School math to arrive at an efficient portfolio. Insights and experiences covered are, for example: the evolution of ALM; unexpected events; pitfalls in assumptions and reporting; coherent economic eras; risk perception; implementation glitches. … read more
The EAA – European Actuarial Academy was founded in 2005 by the actuarial associations of Austria, Germany, Switzerland and The Netherlands. The EAA provides permanent education on actuarial topics. In 2023, the EAA organised about 50 different trainings with over 1,000 participants.
For more information about the EAA – European Actuarial Academy GmbH, the CERA education and all upcoming events, please visit the EAA website: www.actuarial-academy.com.