APRA issued a letter providing high-level observations and summary of results of the 2017 survey on impact of accounting standards AASB 16 (Leases) and AASB 17 (Insurance Contracts) on insurance firms. The survey results demonstrate the complexity of AASB 17 and highlight that careful planning will be needed to ensure that insurers are appropriately prepared to meet their obligations under the new standard, once it is effective.
The Australian Accounting Standards Board (AASB) has issued new standards AASB 16 and AASB 17. In September 2017, APRA wrote to all general insurers, life insurers, and private health insurers to inform them that APRA would not be altering its prudential or reporting frameworks until the impact of the forthcoming changes is better understood. APRA also sent an information request to the insurance industry to inform its understanding of the impact of the new standards. APRA encourages all insurers to review the results of the survey and consider the impact of AASB 16 and AASB 17 on their operations. APRA intends to conduct another AASB 17 survey once insurers are more advanced with their implementation, to better understand the quantitative impact of the changes.
Related Link: Letter with Survey Results (PDF)
Keywords: Asia Pacific, Australia, Insurance, AASB 16, AASB 17, Leases, Insurance Contracts, Impact Survey 2017, APRA
Previous ArticleEIOPA Q&A on Regulations: First Update for March 2018
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting