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

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8700