Insurers call for IFRS 17 improvements and delay

Global insurers are calling for a delay and improvements in the introduction of the International Financial Reporting Standard 17 (IFRS 17).

A global group of nine insurance associations has written a joint letter to Hans Hoogervorst, chair of the International Accounting Standards Board (IASB), that highlights the industry’s concerns about IFRS 17 rules for insurance contracts.

Extensive testing, together with insurers’ detailed implementation planning, has confirmed that a number of important issues still need to be resolved in order to ensure the quality and operational practicability of the new standard, the insurers said. Topics to be addressed include impacts on measurement, operational complexity and implementation challenges.

The group also agreed that a delay of two years is needed to allow for necessary improvements to be made to the standard and for adequate time for companies to tackle the significant implementation challenges of IFRS 17.

“The fact that so many insurance associations from around the world have signed this letter demonstrates the importance and urgency to have a decision on a delay and for the IASB to move forward on the necessary improvements,” the European insurance and reinsurance federation, Insurance Europe, commented.

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