The financial reporting of insurers has long been considered problematic for the image of insurers in financial markets, according to a new report by AM Best examining how IFRS 17 will bring consistency and more market-related values to insurance accounting. External financial reporting for insurers currently varies from country to country with relationships to market values that differ across product, territory and other factors.
The Best’s Special Report, titled “IFRS 17 – A Welcome Advance. Value Measures in Primary Accounts. Delay was a Necessity”, notes that, after a 20-year long development period by the International Accounting Standards Board (IASB) and its predecessor body involving a series of consultation exercises and exposure drafts, IFRS 17 was published as a final standard in September 2017. However, the IASB proposed on Nov. 14, 2018 to delay the effective date for implementation of the standard by one year to financial years beginning on or after Jan. 1, 2022 and to re-open it for limited changes. The delay followed industry lobbying that more time is required to implement the standard.
A full complimentary copy of this report is available via the following link:
AM Best Special Report: IFRS 17 – Financial Review
