Many insurers have substantial work to complete in H1 2023 in order to report financials under the IFRS 17 accounting standard, KPMG UK has warned.
IFRS 17 disclosures are required in part at the 2023 interims, and then fully for the 2023 year-end. However, KPMG UK partners Nathan Patten, Susan Dreksler and Huw Evans, have said there is still time to get things right.
The accounting standard for insurance contracts came into force on 1 January. But writing in a blog published yesterday by the Association of British Insurers, the KPMG partners said there will be a significant period of bedding in for IFRS 17 throughout 2023, as implementation projects wind down and transfer into business as usual.
“Understandably, for most insurers there is still some way to go in getting this all to run smoothly end to end, with strategic and efficient reporting systems, processes and controls, said the KPMG consultants.
The team also cautioned about some challenges for auditors in the first quarter of this year “when insurers will be reporting on an IFRS 4 basis and then in parallel or fast follow producing IFRS 17 results for FY22”.
Insurers globally are expected to spend between $18bn and $24bn on IFRS 17 compliance, according to consultancy WTW, with the bulk of the expense falling on life firms.
InsuranceERM will be holding its fourth annual conference on IFRS 17 on 29 March. The in-person conference will take place at Grocers' Hall in London.
Some of the key topics to be discussed at the conference will include:
IFRS 17’s new KPIs: Is there any alignment in the industry?
Leveraging the new accounting standard to improve processes and systems
IFRS 17’s primary and secondary effects on insurers’ product and business design.
To view the conference highlights and register, please click here.