Commenting on the new IFRS 17 insurance standard published this morning by the International Accounting Standards Board (IASB), ABI Director of Regulation, Hugh Savill, said:
“The IASB has published a new accounting standard, IFRS 17, Insurance Contracts, which will significantly change how insurers report their financial results from 2021. However, it has been subject only to limited operational testing, and its ability to support adequate communication with the market has not yet been evaluated. Some key requirements have recently been developed, and insurers have previously signalled concerns which have not been met. Further, the implementation cost and effort are likely to be substantial, as the industry’s recent experience with Solvency II has shown.
“Looking ahead, the industry will engage in the cost-benefit/public good assessment that is central to the endorsement process for the use of IFRS 17 in the EU. We also need an equally robust endorsement process in the UK once we have left the European Union.”