Th is year, the International Accounting Standards Board (IASB) will issue an exposure draft of the International Financial Reporting Standard (IFRS) for insurance contracts that the IASB plans to finalize in 2011. We will begin by questioning what the “market value” of a liability means. We will then look at the most popular methods for calculating risk margins, and take attendees through a step-by-step example. We will finish by discussing difficult practical issues, such as how to estimate risk margins for new lines of business and how a risk margin might change over time in response to changes in risk.