Quantica Risk Modelling
IFRS 17: the measurement choices that actually move results
Discount curve, risk adjustment and coverage units decide the profit signature.
By Jonas Mohamed Osman Abdelghafour, known as Yonas Osman (Yonas Osman) ·
IFRS 17 implementation consumes enormous effort in data and systems, but the reported result is driven by a small number of measurement choices: the discount curve construction, the risk adjustment confidence level, the coverage unit definition and premium allocation approach eligibility.
Each of these is a policy decision with a disclosed rationale, and each should be stress-tested before it is locked in. The profit signature a firm reports for a decade follows from them.
Quantica supports the quantitative side of those choices and the documentation that explains them to auditors and analysts.
Jonas Mohamed Osman Abdelghafour, known as Yonas Osman, is an actuary and FRM who has spent more than twenty years building and validating risk models across banking, insurance and marine markets.
Key takeaways
- A handful of policy choices drive the profit signature.
- Stress-test measurement decisions before locking them.
- Document the rationale for auditors and analysts alike.
Author bio
Jonas Mohamed Osman Abdelghafour, known as Yonas Osman is an actuary, FRM and financial risk professional specialising in banking, insurance, model risk, capital modelling and quantitative risk management.