Terms of Reference for Tender of IFRS17 Solutions: System, Accounts, and Training

Prime Life Insurance Limited

Prime Life Insurance Limited is an insurance company, established in 2011 by Rwandan investors, a licensed life insurance company authorized by the National Bank of Rwanda (BNR).

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https://www.prime.rw

TERMS OF REFERENCE FOR TENDER OF IFRS17 SOLUTIONS: SYSTEM, ACCOUNTS, AND TRAINING

1. BACKGROUND

Prime Life Assurance Ltd was established in December 2011 by COGEAR Ltd to comply with regulatory directives mandating the separation of short-term and long-term insurance policies. In May 2012, Prime Life Assurance Ltd obtained a license from the National Bank of Rwanda to offer life insurance services. Initially, life insurance services were provided under a department within COGEAR.

In 2014, Prime Life Insurance was predominantly owned by Greenoaks Global Holdings. Significant ownership changes occurred in 2017, with Rwanda Mountain Tea and SP Aviation Companies becoming its major shareholders.

By 2023, FINAFRICA had acquired the majority ownership. Presently, Prime Life Insurance has FINAFRICA and SP Aviation as its main stakeholders. Accredited by the National Bank of Rwanda, Prime Life Insurance provides comprehensive long-term insurance services.

Our primary objective is to bring you credible, innovative, and robust long-term insurance products. We take the guesswork out of insurance, by working fast and successfully delivering fit-for-purpose, market-leading insurance products and practices to clients across Rwanda.

2. SCOPE OF WORK

The service provider will provide to the client a system that can run actuarial reserves/liabilities and accounting models in compliance with the IFRS 17 reporting templates required for reporting results. The Service Provider will train fully on the system, and the functionality of IFRS 17 standards. The service provider will conduct the gap analysis of the portfolio and report inconsistency if any, between current practice and new to-be-adopted.

System Provision: the service provider will provide the Client with a system capable of running actuarial reserves/liabilities and accounting models in compliance with IFRS 17 reporting templates required for Prime Life's results reporting.
Training: Fully train the Client on the system, including the functionality of IFRS 17 standards.
Gap Analysis: Conduct a gap analysis of the current portfolio and report any inconsistencies if any between existing practices and the new practices to be adopted under IFRS 17.

3. IFRS 17 TOOL (SYSTEM)

The service provider will provide the IFRS 17 tool and configuration of the portfolio to generate the following:

Actuarial valuation reports on both insurance and reinsurance contracts, the tool will be accessible and managed by Prime Life Insurance, and it will be flexible to generate summarized and detailed reports.
Performs actuarial calculations including profit testing, projections, and reserving,
Handles data preparation tasks related to actuarial modeling and provides outputs such as liability for remaining coverage (LRC) and liability for incurred claims cash flows to the IFRS 17 calculation engine
Supports the calculation of actuarial liabilities based on PAA, GMM, and VFA approaches
Calculates CSM and loss Components and tracks them over time.
Calculates Risk Adjustment and Discounting
Financials (Journals and disclosures) reports, the tool will be accessible and managed by Prime life insurance, will be covered on both Insurance and Reinsurance contracts, it will be flexible to generate summarized and detailed reports of movements reconciliations.

Prime Life Insurance will enjoy the tool after the configuration of the portfolio and will produce reports as needed. Monthly, quarterly, and annually

Note: The service provided will provide support and maintenance on 7/24 to client users and they will indicate when the tool will be supplied (time line) and the time line for configuration of Prime Life insurance products. The service provide will estimate when Prime Life Insurance will be independent to use the tool.

4. IFRS 17 COMPLIANT SERVICES

The service provider will start the work by understanding our portfolio behavior and revising our policies of choices which will decide the valuation models to be adopted. And methods of grouping our policies.
Design both the qualitative and quantitative IFRS 17 compliant components of the financial statements.
Produce the LIC, including the Risk Adjustment (“RA”) and the LRC liability components.
Produce IFRS 17 related journal entries, which will be used to produce the full set of financial statements by Prime Life Insurance.
Produce IFRS 17 compliant disclosures.
Develop MS Excel models to be used for the IFRS 17 disclosures and accounting mapping.
Providing Financials sub-ledger and Chart of Accounts Accommodating IFRS 17 with Actual data used as input.

5. BOARD AND MANAGEMENT TRAINING

Training board Members

Explaining policies of choices adopted for Prime Life Insurance
Explaining key highlights on implementation of IFRS 17 Vs Prime Life portfolio
Helping the board with IFRS 17 output and financials interpretation.

Training for Management

Make management understand the grouping of policies and interpretation policies of choices
Navigation of IFRS 17 Tools and interpretation of set up.
Preparation of inputs to be loaded in IFRS 17 Tool and validation of them in the system
Interpretation of IFRS 17 output and results
Extractions of the reports from the system
Reconciliation of Actual data used as input to output gotten as results
Training will be done on all phases of the project, (job training) for a few staff who will be in partnership with tool and portfolio customization,
Training/workshop, will be done in masse for selected staff by the management
Training will cover from end to end both formulas in Excel and logic behind system computations among others.

A workshop with the Prime Life team will be using the actual IFRS 17 numbers vs. actual data used to run IFRS 17 results.

6. TECHNICAL REQUIREMENTS