Almost 20 years since the then IASC initially approved a project on insurance accounting, the IASB is now entering the final phase in the due process. The final standard, IFRS 17, concerns Insurance Contracts and, in conjunction with IFRS 9, which covers Financial Instruments, will not only fundamentally impact reporting by insurance companies under IFRS, but will also have wide-reaching business implications covering IT-Structure, personnel, controlling, investments and even product design.
This new standard is scheduled for publication in the first half of 2017, with application becoming mandatory for annual periods beginning on or after 1 January 2021. Although this allows some time to successfully manage the implementation of the new standard, insurers need to establish a plan of action quickly.
First on the to-do list is actually interpreting the new requirements. Once this is done, insurers will then need to assess current processes, procedures, controls and systems, translate the accounting requirements into specifications of the relevant systems and implement the necessary changes, prepare comparative information, and then educate internal and external stakeholders. And all while trying to manage ‘business as usual’.
Challenging? Yes. However, we are uniquely placed to help you successfully interpret and implement IFRS 17, delivering a range of IFRS services, including:
- Translating the accounting requirements into technical specifications and assessing its impact on actuarial systems, financial processes and data requirements
- Developing IFRS 17 reporting solutions starting from your current actuarial systems to deliver the requested new accounting figures
- Designing, implementing and automating actuarial reporting processes
- Developing and implementing engagement and training programmes for staff
- Managing the roll out and testing of the new systems and processes.
Find out more about how we can help you navigate the challenge ahead and turn IFRS 17 into a success story.