Featured Product

    CMF Consults on Implementation of IFRS 17 in Chile

    January 12, 2021

    CMF published a regulatory proposal on the implementation of IFRS 17 on insurance contracts in Chile. The proposed regulation is intended to modernize the rules on “technical reserves,” aligning them with the best international practices and principles in this field. IFRS 17 seeks to improve comparability among information from different companies and to ensure that technical liabilities on the balance sheet of the insurance companies are valued at market value. The consultation period will be open until May 12, 2021. CMF also announced that it will soon send a notice, along with instructions, to the insurance companies, to conduct its second impact assessment on the implementation of IFRS 17.

    The implementation of IFRS 17 is expected to improve the transparency of information reported by insurance companies in their financial statements. It is also expected to ensure that companies provide relevant information, which accurately represents the insurance contracts, by establishing the principles for recognition, measurement, presentation, and disclosure with respect to the said contracts. The proposal considers both the experience of other jurisdictions that serve as a reference for Chile and the international recommendations on the constitution of technical reserves. The following are the key elements addressed in the proposed regulation:

    • Implementing IFRS 17 and replacing the current standard, which is mainly based on IFRS 4
    • Establishing main principles and models provided by IFRS 17, in addition to specific instructions that companies must follow to measure their technical liabilities
    • Establishing special considerations applicable to the national market, specifically for life annuities, disability and survival insurance, and the earthquake catastrophe reserve
    • A public consultation requiring a statement from the insurance industry on the aspects highlighted by CMF as relevant

     

    Related Links

    Comment Due Date: May 12, 2021

    Keywords: Americas, Chile, Insurance, Insurance Contracts, IFRS 17, IFRS 4, Disclosure, CMF

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582