In 2021, insurers will apply the new accounting requirements in IFRS 17 Insurance Contracts. Implementing IFRS 17 represents fundamental changes for some insurers. It is the first time an IFRS Standard has prescribed the measurement of insurance contracts. Because insurers currently use local requirements to account for their insurance contracts, they will approach the transition to the new accounting requirements from many different perspectives.
Applying the requirements in IFRS 17 will prompt significant changes in insurers’ operations; for example, many insurers may have to upgrade their data, systems and processes. As such, the International Accounting Standards Board (IASB) has made available many tools to help insurers to overcome the challenges on 7 December 2017, such as:
(1) Letterbox – a dedicated email address was created for insurers to submit questions about IFRS 17.
(2) Webcast and webinars – a webinar was published since May 2017, to introduce IFRS 17 and five webcasts to discuss on specific requirements, such as the simplifications available for some insurance contracts and the accounting for reinsurance contracts as well as tailored webinars to national standard-setters and to investors. All webcasts can be accessed on the dedicated implementation page on IFRS website or on their YouTube channel.
(3) Transition resource group – a transition resource group (TRG) was established which brings companies, auditors and regulators to discuss questions about the implementation of IFRS 17. All TRG documents, including agenda papers and meeting summaries, is made available on the TRG for insurance contracts page.
(4) Events – organised by IFRS board members and staff to regularly speak at conferences and other events to present IFRS 17. Information are available at IFRS meeting and events diary.
(5) Investor education – meetings with investors and the production of educational materials tailored to investors, such as The Essentials – Busting insurance jargon.
More details can be viewed from the IFRS website.
Source: IFRS, 10 December 2017