Impatti della Loss Recovery Component sui risultati riassicurativi IFRS 17

The global insurance business in the past years has been experiencing a significant revolution with the adoption of the International Financial Reporting Standard 17 (IFRS 17). IFRS 17 is a great innovation in the way insurers account for their contracts, introducing a comprehensive framework for the recognition, measurement, presentation, and disclosure of insurance and reinsurance contracts at a worldwide level. One of the most significant characteristics that differentiate the IFRS 17 from the other regulations and directives in the insurance framework is undoubtedly the attention given to the reinsurance business. Under IFRS 17, the reinsurance accounting requirements are comprehensively outlined, with a specific emphasis on clarifying changes concerning the insurance industry. Particularly, the Loss Recovery Component is introduced as a significant addition. The primary objective of this thesis is to explore and analyze the impacts of the Loss Recovery Component on IFRS 17 reinsurance results. By examining this matter, we aim to shed light on the importance of the implementation of this component and to assessing which are the effects on the financial situation of reinsurance companies. This research is particularly timely, as IFRS 17 has gained international attention, with insurance companies worldwide transitioning to the new standard. In the pursuit of this objective, initially we focus on providing a general overview of the IFRS 17, then we move our attention on the requirements for the reinsurance business and ending with a specific analysis on the Loss Recovery Component and its implementation. In particular, in the first chapter, after a presentation of the Standard and an assessment of the reasons that led to its creation, we will analyze the features of the IFRS 17 and the general requirements for the insurance contracts. Successively we will point out the differences with other accounting standards and directive in the insurance framework. In the following chapter, we will focus our attention specifically on the reinsurance business. For this reason we will present in detail the main changes in the IFRS 17 requirements due to the characterizing aspects of the reinsurance contracts held, introducing in the final part the Loss Recovery Component. The main focus of our research is in the third chapter where we will specifically concentrate on the Loss Recovery Component. After a brief overview of the component, we will firstly understand which are the motives behind its establishment , then with the presentation of an illustrative example we will explain how the Loss Recovery Component can be implemented and which are the impacts on specific elements of the reinsurance business. In the end we will present a balance of benefits and costs of its implementation, recalling the results obtained in the previous section. By examining these significant aspects, we aim to contribute to the ongoing discourse surrounding IFRS 17 with specific attention to the Loss Recovery Component and its implications for the reinsurance business. The choice of this specific topic is guided by personal interest in the insurance framework and the wish to give more prominence to a precise issue that need more attention and dedication due to its importance and at the same time to the lack of in-depth studies by expert of the sector.