Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • June 2019
06

New IFRS 17 amendments published

Open-access content Wednesday 26th June 2019

The International Accounting Standards Board (IASB) has today published six proposed changes to IFRS 17 following pressure from the insurance industry.

2


Its new exposure draft (ED) contains a proposal to defer the effective date of IFRS 17 by one year to January 2022, along with additional scope exclusions for loans and credit cards.

Deferral of some insurance acquisition cash flows for newly issued contracts, and recognition of profit for contracts combining investment services and insurance are also mooted.

Changing the accounting of certain onerous reinsurance contracts, and extending the risk mitigation option to include the use of reinsurance to mitigate financial risk are proposed too.

Stakeholders have until 25 September to respond to the amendments and make suggestions.

IASB chair, Hans Hoogervost, said: "Moving to IFRS 17 is a big task and this proposed package of amendments will help insurers in their ongoing implementation of the new standard."

This comes after nine insurance organisations wrote a letter to the IASB last year warning of "serious operational constraints" on insures' ability to meet the IFRS 17 implementation date.

The group also highlighted a range of concerns they had with the standard, including measurements of discount rates and acquisition cash flows.

Willis Towers Watson (WLTW) said today's amendments address a number of the issues raised, and warned that they could have significant implications for insurers.

However, the changes could require a further postponement to the implementation date of IFRS 17, which the IASB is thought to strongly oppose.

WLTW senior director, Kamran Foroughi, said that some concerns raised by insurers have not been addressed, and that stakeholders would "continue to push for change".

"In our experience, life, property/casualty and composite insurers are focusing on solving operational and technology implementation challenges, which are largely unaffected by the ED," he said.

"As well as considering the ED proposals, we believe firms should continue with implementation projects to address these challenges."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our June 2019 issue of The Actuary.
Click here to view this issue
Filed in:
06

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Qualified Risk and Change Actuary

London (Central)
£Upon Application
Reference
120978

Newly Qualified Reporting Actuary in a Reinsurer

London (Central)
£75,000
Reference
120981

Pricing Manager - CONTRACT

London (Greater)
Up to £110,000, Fixed Term Contract
Reference
120980
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200