Insurance Agenda - Issue 1, 2017

IFRS 17 Ready, set… implications for Australian insurers

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The imminent release of the new IFRS insurance accounting standard will represent the most significant change to Australian insurance accounting requirements in over 20 years.

The new standard will be effective for reporting periods starting on or after 1 January 2021 and will require insurers to entirely overhaul their financial statements. As recently emphasised by ASIC, investors and other stakeholders will expect insurers to explain the likely impact and implementation plans as early as possible.

With the release of the standard now imminent, Australian insurers should consider the following actions to kick-start their implementation program:

  1. Educate the executive team and board on the new requirements and implications.
  2. Understand interpretative issues and analyse the financial, operational and system implications of the new Standard on your organisation
  3. Consider interaction with other new accounting standards.
  4. Draft budget and plan resourcing requirements.
  5. Assess implications for other current or planned programs of activity in the next 3-4 years.
  6. Assess strategic and product implications.

For more information, contact a member of the EY Oceania Insurance team:

Kieren Cummings – Financial Services Partner, EY Australia