A comparative analysis of cost calculation under Solvency II and IFRS 17
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Dátum
2026
Autori
Názov časopisu
ISSN časopisu
Názov zväzku
Vydavateľ
University of Zagreb
ISBN
ISSN
3102-4823
Abstrakt
This paper provides a comparative analysis of the cost calculation methodologies under the Solvency II regulatory framework and the IFRS 17 accounting standard, focusing particularly on their implications for actuarial practice. Although both frameworks require insurers to evaluate and distribute costs related to insurance liabilities, their underlying conceptual and operational principles differ significantly. Solvency II is based on a prescriptive, risk-based approach focusing on economic valuation and 'best estimate' assumptions, which directly influence cost determination and allocation for solvency purposes. In contrast, IFRS 17 is a principles-based accounting framework that gives insurers some flexibility in how they calculate costs, provided they uphold the relevant accounting principles of relevance, faithful representation, and consistency. The theoretical section of the paper outlines the core requirements of each framework, including the role of actuarial assumptions and the allocation of expenses to insurance contract groups. The comparative analysis reveals how regulatory and accounting objectives can result in different approaches to cost treatment, measurement bases and output interpretation. Attention is given to the implications of these differences for actuarial valuation, management reporting and internal control functions within insurance companies. To bridge the gap between theory and practice, the paper provides an example to show how a consistent set of cost drivers and assumptions can lead to different cost allocation outcomes when evaluated under Solvency II versus IFRS 17.
Popis
In: Odyssey conference : proceedings of FEB Zagreb 17th International Odyssey conference on economics and business / rec. Ana Aleksić Fredotović, Antea Barišić, Radoslav Barišić ... [et al.]. 1/2026. 1. vyd. Záhreb : University of Zagreb, 2026. ISSN 3102-4823. Pp. 252-266.
Kľúčové slová
výpočty, kalkulácie, calculations, methodology of economics, analýza nákladov, cost analysis, metodika, methodics, methodology
Výstup z projektu
VEGA 1/0497/25 Implementácia inovatívnych prístupov v oblasti riadenia a modelovania rizík v rámci interných modelov poisťovní
VEGA 1/0124/24 Slovensko v kontexte dôchodkového indexu a indexu starnutia populácie - perspektíva budúcnosti
ESG A-25-103/3020-17 Improving students' knowledge and skills in project management using the IPMA methodology
Citácia
Práva a licenčné podmienky
CC BY-NC-SA Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess