IFRS insurance contracts standard will have far reaching impacts for life and P&C insurers and reinsurers.
IFRS insurance contracts standard will have far reaching impacts for insurers.
The IASB’s insurance contracts standard, IFRS 17, heralds fundamental changes to international insurance accounting. Once implemented, users of financial statements can expect increased transparency on the profitability of new and in-force business – offering greater insight into insurers' financial health than ever before.
The new standard brings both benefits and challenges for insurers. The date the new standard comes into effect is January 1, 2021 - however, in November 2018, the IASB tentatively decided to propose a one-year deferral of the effective date to 2022. That may still seem a long way off, but the implementation effort required will be significant and insurers should get started now.
KPMG professionals can help insurers navigate such complex regulatory changes globally or in individual jurisdictions. Our teams can provide practical insight on the implementation of regulatory issues, and help insurers identify risks, understand new compliance requirements, plan necessary changesand support implementation ahead of time.
Ms Mary H. Trussell