IFRS 17 Insurance contracts: Ready, set… Implications for Asia-Pacific Insurers
The release of the new IFRS insurance accounting standard will represent the most significant change to insurance accounting requirements for Asia-Pacific insurers 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 have entirely overhauled their financial statements. Investors and other stakeholders will expect insurers to explain the likely impact and implementation plans as early as possible.
In preparation for the new standard, insurers should consider the following actions to kick-start their implementation program:
- Educate the executive team and board on the new requirements and implications.
- Understand interpretative issues and analyze the financial, operational and system implications of the new Standard on your organization.
- Consider interaction with other new accounting standards.
- Draft budget and plan resourcing requirements.
- Assess implications for other current or planned programs of activity in the next 3-4 years.
- Assess strategic and product implications.