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IFRS 9 for insurers

Calculation and Modelling Solution
Designed to meet requirements of Risk Management department

The new standards require insurers to calculate 12-month and lifetime Expected Credit Loss in the forward looking way that would capture current trends in the business cycle. For this purpose Finalyse offers a tool that is highly flexible and can effortlessly be adjusted to the specific environment of each individual client (i.e. model specifications as well as layout).

The service is tailored for: Government bonds, Government related bonds, Supranational institution bonds, Covered Bonds, Financial bonds and Corporate Bonds. Can be also useful for: Pools of mortgages, Mortgage backed securities, Loan Commitments

How does Finalyse address your challenges?

Methodology that is easy to explain, understand, implement and is based on solid theory and does not require complicated data sets.

We can adjust the specificities of our ECL modelling to accommodate for particularities of your enterprise/assets and reflect them better

Our methodology is specifically designed for Insurance companies and the assets they typically hold.

Finalyse can leverage its substantial experience in providing similar services to the banking institutions.


We do the heavy lifting developing the ECL models so that insurance institutions could allocate their time and expertise to the core activities.

Eased compliance without much strain on operations

Development of new methodologies and models that are essential from a regulatory standpoint but do not contribute much to the overall business.

To get all your questions answered

How does it work in practice?

Key Features

  1. Simple and intuitive approach that demands little contribution from the insurers themselves
  2. The standard tool can be further adjusted to incorporate specific methodologies on demand 
  3. This solution may be provided as a managed service or directly implemented at the client’s site 
  4. Provides all necessary inputs for disclosure requirements (reporting) on the impairment model stream
  5. The solution can be easily embedded to the data and IT infrastructure of the client

What Finalyse experts say

04 Dec, 2017
IFRS 17 and its impact on the insurance sector

This Expert input gives a basic overview of IFRS 17 and how it is going to be different from the current standards (IFRS 4). We note that there are some similarities between some of the aspects of Solvency II and IFRS standards and examine them, as well as the differences. Furthermore, there are predictions on how the standards are going to influence the operations of insurers and their contracts. Since the insurers are likely to implement IFRS 17 in concert with IFRS 9, the expert input also focuses on how this joint implementation is likely to proceed, what the main challenges are and why it is ultimately a good decision to implement them together.

01 Feb, 2018
IFRS 9 Expected Loss Model Validation

This expert input focuses on the validation of Expected Credit loss model validation; more specifically, it explains why it is a good idea now, after the scramble to have IFRS 9 compliant models in time, to consider validation. This input addresses the challenges of a methodological review of all models, and more specifically, it addresses the review of selected variables – macroeconomic factors, obligor characteristics, etc. It shows how to make the best use of the new ability to compare the outcomes of the models against the observed losses. In addition, this article tackles another challenge: the review of data quality – particularly of the modelling data set and new data.