IFRS 17 : THE IMPACT SO FAR
CASHING IN
Following an extended period of preparation , this year saw many insurance companies worldwide implement the most significant change in global accounting standards in almost two decades when the International Financial Reporting Standard ( IFRS ) 17 came into force . John Bowers , Actuarial Product Director , RNA Analytics , tells us more .
Created to standardise insurance accounting at a global level , the new standard was designed to produce a better understanding of individual insurers ’ financial positions , performance and risk exposure by establishing a uniform approach that would improve comparability and increase transparency .
In the six years since plans to implement the new standard were announced by the International Accounting Standards Board , insurers around the world have made differing degrees of progress , with varying levels of success in implementation .
Depending on their footprint and available resources , insurers have faced considerable challenges in understanding and dealing with the operational impacts of the new standard on data , systems and processes – both technical and practical .
Eight months since the deadline for transition , what does the global picture for readiness look like ? And just how successful have the original goals of the standard been ?
Disclosures and KPIs
In June 2023 , analysts at KPMG looked at a number of insurers ’ first interim reports and trading updates for the quarter ended 31 March 2023 to examine the impact of IFRS 17 disclosures ; as well as the impacts
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