Hana Life Insurance Introduces IFRS17-Compliant Financial Closing System

Hana Life announced on the 31st that it has introduced a settlement system applying the new International Financial Reporting Standard for Insurance Contracts (IFRS 17).

[Asia Economy Reporter Oh Hyung-gil] Hana Life announced on the 31st that it has introduced a settlement system applying the new International Financial Reporting Standard for Insurance Contracts (IFRS17).

Hana Life began the IFRS17 accounting settlement system construction project in June 2018 with Deloitte Anjin Accounting Corporation and completed the system construction after three rounds of integrated testing.

The IFRS17 accounting settlement system requires the simultaneous establishment of an actuarial system that generates liability cash flows, an actuarial assumption system that manages cash flow assumptions, and an economic assumption system, in addition to the settlement system. Accordingly, Hana Life partnered with global consulting firms Willis Towers Watson, Milliman Korea, and Moody's to complete the system construction and implementation.

In particular, Hana Life stated that it implemented the liability settlement part with an actuarial solution and introduced the economic assumption system using Moody's solution. They expect that the system can be managed with a small number of personnel and will be flexible in responding to future changes in standards.

Additionally, the introduction of Moody's economic assumption system is expected to contribute to future soundness enhancement by enabling the prediction of volatility according to discount rates.

Lee Ui-chang, head of Hana Life's IFRS17 Promotion Team, said, "Along with IFRS17 settlement, we have laid the foundation for establishing a new management control system by improving product profitability through financial impact analysis and setting asset management directions based on liabilities."

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