World Manufacturing Risk Index and Pioneer Index Report

1. A Manufacturing Risk Index assesses the, economic, technological and environmental risks in site selection for new manufacturing facilities.

2. A report by Cushman & Wakefield (C&W), ontains an Established Index, which ranks the 30  largest countries by manufacturing output, and a Pioneering Index, which measures the attractiveness of growing but less mature markets.

3. The highest rankings are described as “the scenario of a highly automated manufacturer” and the factors and weightage are as follow:

(i) Conditions - including labor force, logistics, and business environment are weighted at 40 percent.

(ii) Risks - including natural disasters,  economics and energy, are weighted at 20 percent.

(iii) Costs - including labor, construction and  electricity, are also weighted at 20 percent.

4. The rankings also factor in alternative  scenarios, such as manufacturers driven by low  operating costs, which weighs conditions and risks at 20 percent and costs at 60 percent.

[Framework] IFRS 17 Insurance Contracts - Part 3 - PAA on liability for remaining coverage

1. The Premium Allocation Approach (PAA) is a simplification of the Building Block Approach (BBA) to measuring insurance contract assets and liabilities. The IASB developed the PAA as an approximation during the coverage period for a short duration contract.

2. It is an optional measurement approach for contracts of short duration under IFRS 17, prior to and during the exposure period of the contracts. 

3. This post focus on the liability before the occurrence of an insured event (liability for remaining coverage). There is no contractual service margin under the liability for incurred claims as by definition the contractual service margin is amortized over the coverage period of the contract.

4. The liability for incurred claims is measured using risk-adjusted expected present value of fulfilment cash flows.

[Framework] IFRS 17 Insurance Contracts - Part 2 - Remeasuring, Presentation and Impact

1. Remeasuring after subsequent period.

2. Presentation in Financial Statement

3. Impact on Insurers (Life and General)

[Framework] IFRS 17 Insurance Contracts - Part 1 - Summary and Features

1. IFRS 17: Insurance Contracts will take effect on 1 January 2021.  

2. The new standard will replace interim standard IFRS 4: Phase I for entities to continue with their current diverse practices of reporting insurance contracts.