At a meeting of the FSC Korea, participants discussed ways to improve rules on insurance businesses in preparation for the implementation of IFRS 17 on insurance contracts in 2023, To this end, FSC Korea plans to introduce a revision bill to the Insurance Business Act to the National Assembly during the first half of 2021. FSC Korea also published a statement related to the amendments to K-IFRS 1117 on insurance contracts, which among others, outlines the implementation schedule for IFRS 17 in the domestic insurance sector.
IASB had announced the finalized amendments to IFRS 17 in June and decided on a new effective date from 2023. To ensure a seamless implementation of IFRS 17, FSC Korea will set up and operate a task force for drawing up specifics of the revision to the Insurance Business Act to reflect the changes in accounting standard and prepare measures to support insurers with their capital reinforcement. The new accounting standard on insurance contracts is expected to have a wide-ranging impact on the management of insurance businesses with respect to the development of new insurance policies, sales strategies, risk management, and performance assessment. The FSC Korea expects that the implementation of IFRS 17 will provide an impetus for insurance businesses to seek more innovative management solutions and sustainable growth strategies.
Keywords: Asia Pacific, Korea, Insurance, IFRS 17, Insurance Contracts, Insurance Business Act, IASB, FSC
Previous ArticleFCA Proposes Policy on New Powers Under Benchmarks Regulation
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.