Deloitte announcement on IFRS17
On 18 May 2017 the International Accounting Standards Board (IASB) published IFRS 17 Insurance Contracts. The effective date for IFRS 17 is set for 1 January 2021.
- 2021 countdown
- A summary of September's IFRS 17 TRG meeting
- 2021 countdown underway
- May webcast
- The influence of IFRS 17 on reward KPIs
- IFRS 17 Transition Resource Group Meeting highlights
- Data management in the new world
- Host of the webcasts
- Related topics
2021 countdown underway: Insurers prepare for IFRS 17 implementation session II
With the implementation deadline for IFRS 17 drawing closer every day, more and more impacted insurers are beginning or continuing preparations to be ready for 2021.
In this webcast Francesco Nagari, Deloitte’s Global Insurance IFRS leader, and Martin Redington, Aptitude Software’s Chief Technology Officer, discuss findings from their organization's respective market surveys. Key subject areas include:
- An overview of the Insurance market’s IFRS 17 project progress
- Strategic benefits and the value of compliance
- Technology & data implications and requirements
- How to ensure the best outcome for your IFRS 17 project
IFRS 17 webcast featuring Deloitte's Francesco Nagari and Martin Redington, Aptitude Software's CTO.
A summary of October's IASB Meeting
Since IFRS 17 was issued in May 2017, the International Accounting Standards Board (IASB) has been monitoring its implementation. It has been made aware of 25 concerns and implementation challenges. Among them are the issues identified in the letter sent by the European Financial Reporting Advisory Group (EFRAG) in early September. The IASB previously indicated that it would consider whether additional action is needed to address the matters arising from the implementation of IFRS 17.
The IASB's discussions at its meeting on Wednesday, 24 October was a first step in this assessment process.
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Deloitte IFRS Insurance Webcast 2nd October 2018
A summary of September's IFRS 17 TRG meeting
During our webcast on 2 October, Francesco Nagari summarized the outcomes of the IFRS 17 TRG's third meeting, held in London on 26 and 27 September, during which the Group discussed the following agenda items:
- Insurance risk consequent to an incurred claim;
- Determining discount rates using a top-down approach;
- Commissions and reinstatement premiums in reinsurance contracts issued;
- Premium experience adjustments related to current or past service;
- Cash flows outside the contract boundary at initial recognition;
- Recovery of acquisition cash flows;
- Premium waivers;
- Group insurance policies;
- Industry pools managed by an association;
- Annual cohorts for contracts that share in the return of a specified pool of underlying items; and
- Report on other submissions not tabled for individual discussion.
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2021 countdown underway: Insurers prepare for IFRS 17 implementation
Global IFRS Insurance Survey 2018
A year after the Standard's publication and with just over two years until its mandatory "go-live" date, how are global insurers preparing to operate in the new financial reporting regime?
Deloitte commissioned the Economist Intelligence Unit to survey senior executives and published the latest Global IFRS Insurance Survey, 2021 countdown underway: Insurers prepare for IFRS 17 implementation, aims to provide a comprehensive view of insurers' reactions to the new rules, as well as their perceptions on the scale and complexity of this major regulatory change, and the timelines surrounding system implementation necessary to achieve compliance. This webcast discusses key findings including:
- Just enough time to get ready
Global insurers are cautiously confident that they will meet the implementation date with 90 percent responding that they believe they will be compliant by 1 January 2021. Of this total, 45 percent indicated strong confidence to finish on time, with health insurers being the more confident sub-group at 60 percent, and life insurers, with only 37 percent, being the more cautious sub-group. From a regional perspective, Europe is more confident than other regions.
- Upgrading technology is necessary
87 percent of insurers believe their systems technology will require upgrades to capture the new data and perform the calculations required for compliance. Capturing data inputs was also cited as the largest technology challenge.
- Significant implementation costs have been budgeted
The majority of insurers have now set some expectations around budget, with results showing the expected spend to be significantly greater than expectations captured in 2013. 35 percent of insurers expect to spend more than EUR 50m to meet compliance, compared with only 7 percent five years ago.
Francesco Nagari, and Rashmi Dalai, the Managing Editor of Thought Leadership at the Economist Intelligence Unit and the editor of the Global IFRS Insurance Survey 2018 issued, share their views on the key findings the survey unveils in terms of how insurers globally are reacting to and preparing for the IFRS 17 implementation.
A summary of May's IFRS 17 TRG Meeting - Wednesday 9 May
On 2 May, the members of the IFRS 17 Transition Resource Group (TRG) met for the second time to discuss key IFRS 17 implementation issues. Our webcast, held on Wednesday, 9 May, summarized the outcomes of the TRG's discussions on six key papers relating to:
- Determining quantity of benefits for identifying coverage units to account for the release of CSM in profit or loss;
- Risk adjustment in a group of entities and group risk diversification benefits;
- Combination of insurance contracts;
- Cash flows within the contract boundary arising from options to add coverage and when competition limits the practical ability of insurers to reprice fully contracts' risks;
- Boundary of reinsurance contracts held with repricing mechanisms controlled by the reinsurer;
- Implementation challenges outreach report.
The IASB Staff also reported on other implementation questions submitted but not tabled for detailed TRG discussion.
View the previous Deloitte IFRS Webcast
In the latest Deloitte IFRS Webcast, Global IFRS Leader Francesco Nagari discusses recent IASB rulings and guidance.
The influence of IFRS 17 on reward KPIs
What is the relationship between IFRS 17 and reward KPIs? How should the insurance industry approach changes on reward KPIs that are expected as a result of the implementation IFRS 17? What is the expected impact of such changes on the executive Total Reward design?
This webcast discusses:
- The relationship between IFRS 17 and reward KPIs;
- Which KPIs are affected and how they will change;
- Broader effects of IFRS 17 on reward KPIs; and
- An exemplary project plan in implementing the necessary changes.
Simon Walpole and Peter Devlin share their views on possible ways of addressing the challenges that IFRS 17 creates around the design of Total Rewards by creating customized solutions that integrate with the requirements of IFRS 17.
IFRS 17 Transition Resource Group Meeting highlights
14 February 2018
On 21 September 2017, the International Accounting Standards Board appointed the members of the IFRS 17 Transition Resource Group (TRG). Our latest webcast looked at the outcomes of the TRG's first meeting that took place on 6 February 2018, and discussed seven key papers relating to:
- The separation of insurance components of a single contract;
- The contract boundary of contracts with annual repricing mechanisms;
- The contract boundary of reinsurance contracts held;
- Insurance acquisition cash flows paid on an initially written contract;
- Determining the quantity of benefits for identifying coverage units;
- Insurance acquisition cash flows when using fair value transition; and
- Issues that while they were raised by stakeholders' submissions, could be resolved by IASB Staff without a full paper for discussion at the TRG meeting.
Read more about the TRG's meeting in 'IFRS in Focus' on IAS Plus.
What are the key challenges facing insurance companies currently
This webcast discusses:
- The overview of the current insurance data environment from a finance and actuarial perspective;
- The new era of insurance financial reporting heralded by IFRS 17; and
- The impact of IFRS 17 on data and systems.
Francesco Nagari and Richard Marshall share their views on possible ways of addressing the IFRS 17 challenges around data management and on the range of solutions available to insurance companies to enhance their data integration and automation.