The implementation of IFRS 17 by non-life insurers is in full swing, but many of the initial assumptions and decisions are expected to evolve in the period before the 1 January 2023 deadline.
As well as making decisions over issues such as discount rates and treatment of reinsurance, non-life insurers count data requirements and operational complexities as critical challenges.
These are some of the findings from the IFRS 17 for Non-Life Insurers: A 360-Degree View of Implementation Challenges report, produced by InsuranceERM and sponsored by Moody’s Analytics.
"This report attempts to capture the different perspectives of key stakeholders. This feedback gathered from non-life insurers, regulators and consultants details the current state of IFRS 17 implementation and current challenges facing non-life insurers,” says Srini Iyer, senior director at Moody’s Analytics.
The report features in-depth interviews with non-life insurers across geographies and sectors, as well as opinions from supervisors and consultants.
“Much of the attention to date has been on the challenges facing the life insurance sector,” note InsuranceERM’s Christopher Cundy and Cintia Cheong.
“There is no doubt that accounting for long-term contracts under IFRS 17 will be difficult and require significant investment. Nonetheless, implementing IFRS 17 in the non-life sector faces some similar, and some unique, challenges, too.”
The report is free to download and can be accessed here.
Cintia Cheong, Christopher Cundy