LONDON, Nov. 24, 2020 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today announces the conclusion of a project to assess its PathWise platform for re/insurers' IFRS 17 reporting.
Professional services firm PwC was engaged by Aon to compare PathWise with PwC's own IFRS 17 calculation tool using sample data, a test plan, and test cases developed by the two firms, with the aim of testing various in-scope IFRS 17 elements under a range of possible scenarios.
While it is impossible to test all possible situations that could arise in practice, the comparison did not reveal any material deviations (above one percent) between PwC Actuarial Services' IFRS 17 calculation tool (version 0.8.1254.1442) and PathWise’s IFRS 17 results (v2.24). PwC’s calculation tool is aligned to the latest IFRS 17 insights, including the International Accounting Standards Board’s (IASB) Amendments to IFRS 17 published in June 2020, and knowledge of PwC.
Koen Engels, PathWise Solutions Group Account Director at Aon, said: “Aon’s goal was to ensure that our interpretation and implementation of IFRS 17 in PathWise had a rigorous external review from a leading professional services company. PwC’s feedback allowed us to make adjustments to some corner cases, and we are pleased to have engaged in this important project to ensure our IFRS 17 engine is fit for purpose.”
Robin Zeeman, Senior Manager at PwC, commented: “We are proud to have worked with Aon’s PathWise team on this IFRS 17 review. Despite the COVID-19 pandemic during 2020, we completed this project on the basis of the latest IASB IFRS 17 standard and are pleased to release this review conclusion.”
As part of the review, in-scope model outputs included the general and simplified models and variable fee approach for initial and subsequent measurement, as well as Contractual Service Margin calculations, accounting treatment of risk adjustment, reinsurance assets and the associated disclosures representing the results.
Calculations were compared on the cohort level (unit of account), and in-scope disclosures included the IFRS 17 balance sheet line items and the profit and loss line items with Other Comprehensive Income.
Out of scope for the project were the actual model logic implemented in PathWise, sub-ledger functionality, holding level reconciliation and any other non-IFRS 17 standards.
PathWise delivers re/insurers IFRS 17 results through the orchestration of all business units’ data and calculations in a timely manner using state-of-the-art technology and smart automation. IFRS 17 disclosures can be produced for all measurement models at the lowest level of granularity, the insurance contract level.
For further information, please visit: www.aon.com/pathwise.
The user of PathWise understands that any calculation derived from PathWise was made by the user using a model which was developed by Aon. PwC Actuarial Services advised in accordance with instructions provided by Aon and this advice was performed exclusively for Aon's benefit and use. PwC Actuarial Services, its representatives, partners or employees do not accept or assume and deny any liability or duty of care whether in contract or in tort (including without limitation, negligence and breach of statutory duty), and shall not be liable in respect of any loss, damage or expense of whatsoever nature which is caused by any use the user may choose to make of PathWise, or which is otherwise consequent upon the gaining of access to PathWise by the user or for any (possible) consequences of any action or omission by anyone as a consequence of the use of PathWise or any decision based on the use of PathWise. Further, the user of PathWise agrees that PwC Actuarial Services‘ advice to Aon is not to be referred to or quoted, in whole or in part, in any prospectus, registration statement, offering circular, public filing, loan, other agreement or document and not to distribute the information without PwC Actuarial Services' prior written consent.
Aon plc (NYSE: AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
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SOURCE Aon plc