Empowering Swiss Re with an innovative IFRS17 solution to support its clients in evaluating reinsurance transactions.

Check Claudio’s LinkedIn profile.

Claudio Tröhler, Transactional Executive P&C Structured Solutions at Swiss Re, unveils the groundbreaking PAA Calculator, a precision tool custom-built by our team.

What exactly is the Premium Allocation Approach (PAA) Calculator?

Claudio: The PAA Calculator is an application calculating the economics of a reinsurance transaction according to the IFRS17 reporting standards. It serves two primary functions:

PAA Eligibility Test: It assesses whether reinsurance transactions qualify for PAA accounting under IFRS17 by performing a quantitative evaluation for different scenarios under PAA and BBA.

Impact Estimation: It estimates the impact of reinsurance transactions on the client’s portfolio by providing the Liability side of the Balance Sheet (LRC and LIC), as well as the Financial Performance, calculated for the current and all future periods until expiration.

What is the use case for Swiss Re? I mean: How do you use it?

Claudio: At Swiss Re we always strive to serve our clients in the best way possible. Since January 2023, many of our clients have been delivering their financial results under the IFRS17 reporting standards. Therefore, it is of vital importance for them to evaluate the effects of a reinsurance transaction under such standard, already before closing the transaction itself. It is a key step in their decision-making process for the transaction. Thanks to the PAA Calculator we can now offer such a service to our clients.

How was the collaboration with Systemorph in developing the PAA Calculator?

Claudio: We had a very short time window of opportunity to develop this application. Systemorph had the right mindset and can-do attitude for the task. Obviously, we had our ups and downs throughout the collaboration – such moments belong to a challenging and ambitious project! But I really appreciated Systemorph’s professionalism and their profound knowledge of the subject. And I now have a working tool in my hands that I can offer to my clients, which is what ultimately really matters!

Is there anything that impressed you about Systemorph?

Claudio: Yes, two things. First, their speed of delivery in such a complex area as IFRS17, in which the whole industry is experiencing challenging times and second the very smooth collaboration. I gained full trust in Systemorph, and I look forward to continuing the partnership.