Organized in collaboration with Bahrain Insurance Association (BIA)
KPMG Bahrain and in collaboration with BIA has recently hosted an awareness seminar and a workshop to showcase the implications of the International Financial Reporting Standards (IFRS 17 “Insurance Contracts” and IFRS 9 “Financial Instruments”) on the insurance sector. The new standards will be effective on insurance companies from 1 January 2022, and companies in Bahrain are in progress to adopt those changes.
The events were attended by more than 60 representatives from the Insurance sector and discussed IFRS 17 and 9 roadmap, methodologies and challenges. Yusuf Hasan, KPMG IFRS 17 Implementation Lead Partner in the MENA region and IFRS Specialist was a keynote speaker during the events, who was also be joined by representatives from insurance companies in Bahrain.
Jaafar AlQubaiti, Partner and Head of Audit, at KPMG Bahrain welcomed the attendees and said “We are pleased to host these events to discuss the new standards for insurance companies, which will have various impacts on the insurance sector in Bahrain. IFRS 17 and 9 are meant to create common ground for insurance companies which will need to understand and apply the new standards to their insurance contracts and financial assets. It is an inventible change, which is set to improve the quality of data required for a better and improved decision-making.” As part of our commitment to the industry, we also had a workshop with the Central Bank of Bahrain and discussed the IFRS 17 roadmap, challenges and potential impacts”.
Abdulla Sultan, BIA Board Member and Bahrain Kuwait Insurance Company’s First Deputy CEO, also added in his remark: “We would like to thank KPMG and BIA for their collaboration to build awareness to the local insurance industry. Implementation measures of both IFRS 17 and IFRS 9 standards are to be initiated at the earliest, in line with the requirements of Central Bank of Bahrain. There are around 24 months remaining to the implementation deadline and still a lot of work to be completed. Although there are some uncertainties on the precise impact of IFRS 17, it should be taken as an opportunity to improve current practices, data analysis, pricing and product design.
Yusuf Hasan, KPMG IFRS 17 Implementation Lead Partner in the MENA region and IFRS Specialist, was the keynote speaker during the one-day events. He said during his presentation “IFRS 17 is going to be a game changer and a catalyst towards a positive organizational shift. Insurance companies are utilizing this change as an opportunity to review and upgrade their systems and framework. I believe companies in Bahrain should start the gap analysis and impact assessment to help them identify the required actions to take them towards IFRS 17 and IFRS 9 compliance from 1 January 2022.”
The events were held on 9th December 2019 at the Gulf Hotel. The International Accounting Standards Board (IASB) issued IFRS 17 “Insurance Contracts” in May 2017. IFRS 17 sets out the requirements a company should apply in reporting information related to insurance contracts it issues and reinsurance contracts it holds. IFRS 17 is the first comprehensive and truly international IFRS Standard establishing the accounting for insurance contracts. It provides updated information about the obligations, risks and performance of insurance contracts and it increases transparency in financial information reported by insurance companies.
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