臺大管理論叢第31卷第2期

56 The Impact of IFRS 9 and IFRS 17 on the Regulation and Management of the Taiwan Life Insurance Industry: A Preliminary Anlysis 2. Research Design In this study, we first discuss the key characteristics of both IFRS 9 and IFRS 17. Secondly, we analyze the corresponding supervision measures and strategies taken by the FSC. Through conducting qualitative interviews with two representative industry players, we further explore the impact of IFRS 9 and IFRS 17 on domesticlife insurance industry after each standard becomes effective. Moreover, although IFRS 17 has not yet been implemented, it is estimated that the implementation will have a great impact on the life insurance industry. Thus we employ quantitative simulation analysis to fully investigate the dual impact of both standards on Taiwan’s life insurance companies when implementing simultaneously. In the quantitative analysis, at the given composition of liabilities and of a company’s objective function, we simulate assets and liabilities, and try to find the optimal combination and suitable accounting classification of investment assets of a life insurance company. First we assume that life insurance company A will sell whole life insurance policies to 10,000 35-year-old female policyholders at the beginning of each year in the next thre years, which means 30,000 policies in three years. The insured amount of each policy is NT$1 million, and the premium is paid over a 20-year period and collected at the beginning of each year. When an insured person dies, company A will pay the insurance money at the end of the year. In terms of capital investment, we assume that life insurance company A will invest funds that received from premiums in stocks and bonds, and the investment strategy is to buy and hold. The stock positions are in EFF of Taiwan Stock Exchange Weighted Index (TWSE), and the bond positions are evenly distributed between zero-coupon government bonds with maturities of 1 to 30 years. According to IFRS 9, bond investment can be classified into FVTPL, FVOCI and AC; stock investment can be classified into FVTPL and FVOCI. Therefore, company A’s overall investment positions will have 2 types and 5 accounting classifications of assets. 3. Results Our research shows that the FSC has opted for industrial self-discipline, external cooperation and corporate governance.Overall, thesestrategies can indeed help reduce

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