The International Accounting Standards Board (IASB) is proposing a one-year delay to the implementation of IFRS 17 (and IFRS 9) and limited changes to its requirements. Insurers are asking what this means for their implementation efforts and how best to respond.
How will IFRS 17 impact your business?
To understand the impact of IFRS 17, completing an assessment can help solidify the factual understanding of the implications of the delay. Our experience shows that an instinctive view can be misleading. In just a few days, a full assessment can be completed with each of the sub-steps being done in parallel and joining up at the end.
Three key actions to help evaluate the impacts of the IFRS 17 delay:
- Take stock of the current position of your IFRS 17 program
- Consider the impacts of possible and proposed changes to the requirements of IFRS 17 and the timing of those changes
- Assess the flexibility that any change to the timetable might offer to the program
What are your options?
Once an impact assessment has been carried out, insurers should consider the broad options at both program and work-stream levels. There are three choices available in response to any delay to a regulatory requirement:
- Continue the program within the current timetable (either to completion or to deliver the main key milestones)
- Reconfigure or re-time parts of the program (on a piece-by-piece basis) to meet the new timetable
- Slow activity immediately and plan to restart planned activities at a later date
While these options can include any combination of the above, there are tools and techniques that can be used to help make decisions that will preserve momentum, manage the risk of cost increases and help communicate with key stakeholders.