Taxation and Audit of the

Insurance Industry
With IFRS 17
13 – 20 June 2024 Sandton
Johannesburg South Africa
Course Overview

The "Taxation of the Insurance Industry" course offers an in-depth exploration of tax regulations and practices
specific to the insurance sector. Participants will delve into the roles and regulatory frameworks of insurance
within the financial industry, understand the principles of insurance taxation, and learn about compliance and
investigative techniques.
The program covers taxation issues for property, casualty, and life insurance companies, international tax
considerations, and alternative taxation methods. Designed for professionals involved in tax, regulation, and policy
making in the insurance industry, this course equips attendees with the knowledge to navigate complex tax
challenges effectively.

Course Objectives

• Understand the intricacies of insurance taxation within the financial sector.

• Navigate the regulatory and compliance landscape effectively.
• Apply fundamental and specific taxation principles to property, casualty, and life insurance entities.
• Address international taxation challenges, and explore alternative taxation methods.
Who Should Attend?

• Accountants
• Revenue Officer
• Tax advisors
• Tax Revenue officer
• Tax Revenue Accountant
• Tax Accountant
• Tax Auditors
• General tax practitioners
• Tax practitioners in advisory firms
• Tax specialists in commercial and trade industries
• Government officials
• Government agencies
• In-house tax directors/managers
• Tax regulation bodies

Course Outline

Introduction to the Insurance Industry and Taxation Framework

• Introduction to the Insurance Industry

◦ Overview of the insurance industry as part of the financial sector
◦ The role of insurance companies as financial intermediaries
• Basic Taxation Principles for Insurance Companies
◦ General timing and valuation issues in taxation
◦ The principle of accrual of income and matching of revenues and expenses

Reinsurance and reserving strategies

• Understand the concept of risk
 • Understand the concept of insurance and reinsurance
• Appreciate the need for and benefits of reinsurance
• Outline the limitations of reinsurance
• Describe the fundamental legal principles of insurance and reinsurance

Life Insurance

• Types of life insurance policies

o Term life insurance
o Whole life insurance
o Universal life insurance
o Variable life insurance
• Components of life insurance policies
• Underwriting process in life insurance
• Policy provisions and riders
• Claims management in life insurance

Non-Life Insurance (General Insurance)

• Types of non-life insurance policies

o Property insurance
o Liability insurance
o Health insurance
o Motor insurance
o Travel insurance
o Marine insurance
• Underwriting process in non-life insurance
• Policy provisions and exclusions
• Claims management in non-life insurance

Regulatory Environment and Tax Compliance

• Regulation of the Financial Institution Industry

◦ Understanding the regulatory framework for insurance companies
◦ The relationship between regulation and tax
• Taxation Compliance and Investigation Techniques
◦ Adoption of digital tax systems to enhance compliance and revenue
◦ Investigative techniques and tools for effective tax crime and fraud investigation

Taxation Principles and Compliance

• Taxation Fundamentals
◦ General timing and valuation issues
◦ Accrual of income and expense matching
• Compliance and Investigations
◦ Investigative approaches in tax compliance
◦ Techniques for detecting and preventing insurance tax fraud
Special Issues in Taxation of Insurance Companies

• Taxation of Property and Casualty Insurance Companies

◦ Understanding the taxation of different types of P&C insurance policies
• International Taxation and Reinsurance
◦ Issues in international taxation and the role of reinsurance
◦ Treatment of reinsurance under the income tax

Advanced Topics and Case Studies

• Taxation of Life Insurance Companies and Policyholders

◦ Nature and types of life insurance and their taxation
◦ Tax treatment of policyholders
• Case Studies and Group Discussion
◦ Analysis of selected OECD countries: Treatment of general insurance, reinsurance, and life
insurers
◦ Group discussion on alternative methods of taxing financial institutions.

International Taxation

• International Taxation Issues

◦ Allocating income and expenses.
◦ Application of tax treaties and reinsurance
• Alternative Taxation Methods and Closing Discussions
◦ Alternative methods of taxing financial institutions.
◦ Open forum for participant questions and case study discussions.

Section 2 - IFRS 17

This session covers will cover the fundamental aspects of IFRS 17, from its core principles to
practical implementation considerations and emerging issues. It aims to equip participants with the
knowledge and skills needed to navigate the complexities of insurance contract accounting under
IFRS 17 effectively.

Introduction to IFRS 17

• Overview of IFRS 17 and its objectives

• Scope and applicability of IFRS 17
• Comparison with previous accounting standards (IFRS 4)

Measurement of Insurance Contracts

• Measurement models under IFRS 17 (General measurement model, Premium Allocation

Approach)
• Recognition of insurance revenue and expenses
• Discount rates and risk adjustment
Presentation and Disclosures

• Presentation of insurance contracts in financial statements

• Disclosures requirements under IFRS 17
• Impact on financial performance and position

Module 4: Transition to IFRS 17

• Transition options and practical expedients

• Considerations for first-time adoption
• Implementation challenges and best practices

Case Studies and Practical Examples

• Application of IFRS 17 principles to real-life scenarios

• Analysis of case studies involving complex insurance contracts
• Practical exercises to reinforce learning

Regulatory and Market Implications

• Regulatory environment and developments related to IFRS 17

• Market implications and stakeholder perspectives
• Future trends and considerations for insurers

Implementation and Project Management

• Project planning and governance for IFRS 17 implementation

• Role of key stakeholders and project teams
• Challenges and strategies for successful implementation

Emerging Issues and Updates

• Recent developments and updates related to IFRS 17

• Emerging issues and areas of debate
• Future outlook for insurance accounting standards

Conclusion and Wrap-Up

• Recap of key concepts and takeaways from the course

• Q&A session for addressing participant queries
• Resources for further learning and support

End of the Workshop