ADVANCED DECISION MODELS FOR IFRS-17 AND IFRS-9 IMPLEMENTATION IN THE SAUDI INSURANCE SECTOR
DOI:
https://doi.org/10.18623/rvd.v23.7964Keywords:
IFRS 17, IFRS 9, Saudi Insurance Sector, Advanced Decision Models, Expected Credit Loss, Contractual Service Margin, Risk Adjustment, Insurance Finance, Regulatory Reporting, Financial TransformationAbstract
Following the official adoption of IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments, Saudi insurers have transitioned to a more data-intensive reporting environment. These combined standards fundamentally alter the measurement and explanation of insurance liabilities, investment assets, expected credit losses, profit emergence, asset-liability volatility, and disclosure narratives. This review develops an advanced decision model for IFRS-17 and IFRS-9 implementation within the Saudi insurance sector, aiming to translate technical accounting requirements into an integrated decision framework that supports policy selection, actuarial valuation, expected-credit-loss modelling, portfolio classification, subledger design, management review, and regulatory reporting. A structured review methodology was applied to literature, regulator publications, and professional guidance issued between 2020 and 2025. Evidence was organized through thematic synthesis and multi-criteria decision analysis, covering technical accuracy, data quality, governance, auditability, system readiness, model risk, operational cost, and board-level usefulness. The findings indicate that successful implementation relies less on isolated accounting calculations and more on coordinated decisions across finance, actuarial, risk, investment, IT, and internal control functions. IFRS 17 requires defensible grouping, measurement approach selection, fulfilment cash-flow modelling, risk adjustment, contractual service margin release, and disclosure consistency, while IFRS 9 necessitates disciplined asset classification, impairment staging, and forward-looking expected-credit-loss estimation. The proposed Saudi decision architecture integrates these areas through a unified evidence chain, enabling insurers to manage earnings volatility, enhance compliance, improve transparency, and support future financial-sector development. This paper contributes a practical, review-based model for decision governance and implementation maturity, rather than focusing on a single-company valuation exercise.
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