Insurers take issue with IFRS17

The implementation of International Financial Reporting Standards (IFRS) 17 standards may prove a challenge for insurers, according to AM Best. A particular obstacle is the limited time for preparation available for those in the sector, as they must also provide comparative figures for the previous year (2020). “The major re/insurers are in very early stages of adopting IFRS 17 and there have already been calls for a postponement to its implementation date,” argues the ratings agency. However, early adoption of new IFRS standards could give insurers a competitive advantage over their rivals, said PwC in a report. “Companies need to start thinking about compliance now if they want to do it properly and turn it into a competitive advantage,” said Greg Galeaz, US insurance industry leader at PwC. “Some companies have already started moving towards compliance, while others are beginning to lay out a framework and roadmap for compliance now.” “If they don’t start now they will end up with a more compliance-based adoption versus a holistic approach which could yield more benefits,” he added. “The real question is, are companies going to look at this as an opportunity?”

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