IFRS 17 Insurance Contracts
The IASB published IFRS 17 ‘Insurance Contracts’ on 18 May 2017 and the effective date for IFRS 17 is set for 1 January 2021. Consequently, we are delighted to announce the launch of a series of IFRS 17 events which we will hold throughout 2017. The events will aim to highlight the priorities and key issues as insurance companies work through the implementation of IFRS 17.
Our final event - Impact on IT and processes
Our fourth and final event of the series was held on the 5th of September 2017 and focused on: Understanding the impact across the entire business.
We discussed the key considerations from processes to IT upon the road to implementation, including:
- Business impact assessment
- Data management
- System and IT impacts and potential solutions
- Programme delivery
Our third event - Impacts for Reserving
Our third event was held on the 2nd of August 2017 and focused on: understanding the financial and practical impacts for reserving.
We discussed the key impacts for reserving under the new Standard, covering some of the key actuarial considerations, including:
- Best estimate liabilities and best estimate cash flows
- Contract boundaries
- Discount rates
Our second event - "A deep dive of the new Insurance Contracts Standard: IFRS 17"
Our second event was held on the 11th of July 2017 and was a deep dive of the new Insurance Contracts Standard, IFRS 17.
We discussed the fundamental requirements of the new Standard, with a focus on some of the key actuarial considerations, including:
- Measurement, with a deep dive of the various measurement bases
- Level of aggregation of insurance contracts
- Modification and de-recognition
Our first event - Deciding on the options for implementing IFRS 9: Financial Instruments
Our first event was held on the 30th of May 2017 and introduced the new Insurance Contracts Standard. The event also focus on the first big decision: Deciding on the options for implementing IFRS 9 - Financial Instruments.
Below are some key considerations when deciding on your options for implementing IFRS 9:
- Do you qualify for the temporary exemption?
- Are you are planning to early adopt IFRS 17 before 1 January 2021? If so, you must also apply IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers
IGAAP reporter with IFRS group reporting
- Have you considered the implications on your group reporting requirements?
IGAAP reporter with no IFRS group reporting
- What is the timing for FRS 102 to change?
The 2021 effective date means that entities applying the deferral approach, which permits an entity to apply IAS 39 rather than IFRS 9 for annual reporting periods beginning before 1 January 2021, can continue to do so right up until the new insurance contract becomes mandatorily effective.