Featured Product

    IASB on Preparing the Market for IFRS 17 on Insurance Contracts

    June 11, 2018

    IASB published an article on preparing the market for the IFRS 17 standard on insurance contracts. The article examines what this standard means for the investor community. It provides an overview of IFRS 17, examines issues with IFRS 4 (the interim insurance contracts standard), analyzes benefits of IFRS 17, and discusses the worldwide impact of the standard.

    IASB issued the IFRS 17 standard in 2017 and the standard comes into effect in 2021. The article establishes that the new standard represents a seismic change not only for the insurance companies that will use it but for the user community, particularly for analysts covering the sector worldwide. While many are expecting a turbulent bedding-in period when the standard first comes into effect, insurance analysts worldwide believe it will make a huge difference to the consistency, transparency, and comparability of insurance companies. The most critical question is likely to be whether IFRS 17 and the transparency and comparability it promises to bring will make the insurance sector a more attractive prospect for investors.

    The impact of IFRS 17 is expected to be greater in some regions—such as those that routinely use historical interest rate information—than in others. In Asia and Europe, for example, embedded value reporting is voluntarily offered by many insurers to provide information on long-term contracts. While the information about the profitability of long-term contracts provided under IFRS 17 will be more comparable than embedded value reporting, moving away from embedded value will be a significant change for investors. Some analysts are concerned about transitional arrangements to the new standard and concerned that the format of key statements could differ from company to company.

    Keywords: International, Insurance, Accounting, IFRS 17, Insurance Contracts, Comparability, Transparency, IASB

    Featured Experts
    Related Articles
    News

    HKMA Consults on Supervisory Policy for OTC Derivatives Transactions

    HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.

    May 25, 2020 WebPage Regulatory News
    News

    PRA on Regulatory Capital and IFRS 9 Requirements for Payment Holidays

    PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.

    May 22, 2020 WebPage Regulatory News
    News

    HKMA on Fintech Adoption and Innovation by Banks in Hong Kong

    HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.

    May 20, 2020 WebPage Regulatory News
    News

    BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk

    BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guide for Managing Climate and Environmental Risks

    ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis

    ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.

    May 20, 2020 WebPage Regulatory News
    News

    EBA Assesses Interlinkages Between Recovery and Resolution Planning

    EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).

    May 20, 2020 WebPage Regulatory News
    News

    SRB Publishes Final MREL Policy Under the Banking Package

    SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.

    May 20, 2020 WebPage Regulatory News
    News

    US Agencies Amend Interim Final Rule on Transition Period for CECL

    US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.

    May 19, 2020 WebPage Regulatory News
    News

    ECB Releases Results of March Survey on Credit Terms and Conditions

    ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.

    May 19, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5208