FSC Korea to Revise Insurance Act for Implementation of IFRS 17
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.
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Keywords: Asia Pacific, Korea, Insurance, IFRS 17, Insurance Contracts, Insurance Business Act, IASB, FSC
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