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
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • September 2019
09

European insurers call for further IFRS 17 changes

Open-access content Monday 16th September 2019 — updated 5.50pm, Wednesday 29th April 2020

Europe’s largest insurance companies have urged the International Accounting Standards Board (IASB) to publish further amendments to IFRS 17.

2


In a joint letter, the CFO Forum and Insurance Europe - which represent 23 of the continent's largest insurers and 95% of premium income - highlight several unresolved IFRS 17 issues.

Three challenges around the level of aggregation, transition and presentation are given particular emphasis due to the high potential impact on operational complexity and costs.

Meanwhile, Insurance Europe called for the implementation date for IFRS 17 to be delayed to 1 January 2023.

This comes just months after the IASB published an exposure draft proposing a one-year delay to January 2022, along with six other changes to the accounting standard.

"We welcome the changes proposed in the exposure draft as these represent a significant improvement, but we believe additional changes are still required," the letter states.

"The IASB has chosen not to propose amendments for several identified important issues, and for other issues, has proposed less effective amendments."

Regarding the level of aggregation, the letter says that annual cohorts should not be used for contracts in the variable fee approach with significant mutulisation.

For presentation, the insurers state that changes should be made to remove the inconsistency between group and solo reporting that is solely due to reporting frequency.

And for transition, the letter argues that the criteria for the modified retrospective approach should be more principles-based.

A number of additional issues are mentioned, such as the proposed definition of "proportionate" for reinsurance, which would still create "significant" accounting mismatches.

"Furthermore, we have identified amendments that introduce unintended consequences," the letter states. "These include guidance on the level at which eligibility for the variable fee approach should be assessed.

"We appreciate the opportunity to provide input for resolving these remaining issues and would be pleased to discuss these further with you."


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

This article appeared in our September 2019 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Most financial firms unprepared for LIBOR transition

Less than half of financial services firms are confident about transitioning away from the London Interbank Offered Rate (LIBOR) by the end of 2021, a global survey has uncovered.
Tuesday 17th September 2019
Open-access content
2

Pensions and healthcare at risk from no-deal Brexit

Around 1.3 million British citizens living in the EU could see their pensions, healthcare and insurance put at risk by a no-deal Brexit, the deVere Group has claimed.
Thursday 19th September 2019
Open-access content
shutterstock

Record InsurTech investment forecast

Insurance technology firms attracted $3bn (£2.4bn) of investment in the first half of 2019 worldwide, and are forecast to receive a record $6bn by the end of the year.
Wednesday 11th September 2019
Open-access content
2

Over-60s lose almost £2bn through pension opt-outs

British adults aged 60 and over could be missing out on nearly £2bn in retirement savings by opting out of workplace pensions early, a new study has found.
Wednesday 11th September 2019
Open-access content
2

Widespread pension confusion among UK public uncovered

The majority of UK workers think pensions are confusing and don’t know how much to save, according to a new study, with much of the blame levelled at employers.
Tuesday 10th September 2019
Open-access content
2

Climate change ranked the top extreme risk for investors

Global temperature change is the number one extreme risk to economic growth and asset returns for investors, a new ranking by the Thinking Ahead Institute has suggested.
Monday 9th September 2019
Open-access content

Latest from September 2019

2

New ESG investment rules come into force

UK pension scheme trustees must consider environmental, social and governance (ESG) factors when making investments decisions under new rules that came into force today.
Tuesday 1st October 2019
Open-access content
New GMP equalisation guidance ©iStock

GMP equalisation guidance published

The Pensions Administration Standards Association (PASA) has today published further guidance for schemes undertaking guaranteed minimum pensions (GMP) equalisation.
Monday 30th September 2019
Open-access content
Further IFRS 17 changes proposed ©iStock

WTW proposes IFRS 17 changes

Willis Towers Watson (WTW) has recommended that the International Accounting Standards Board (IASB) make several additional amendments to IFRS 17.
Monday 30th September 2019
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 09

2

New ESG investment rules come into force

UK pension scheme trustees must consider environmental, social and governance (ESG) factors when making investments decisions under new rules that came into force today.
Tuesday 1st October 2019
Open-access content
New GMP equalisation guidance ©iStock

GMP equalisation guidance published

The Pensions Administration Standards Association (PASA) has today published further guidance for schemes undertaking guaranteed minimum pensions (GMP) equalisation.
Monday 30th September 2019
Open-access content
Further IFRS 17 changes proposed ©iStock

WTW proposes IFRS 17 changes

Willis Towers Watson (WTW) has recommended that the International Accounting Standards Board (IASB) make several additional amendments to IFRS 17.
Monday 30th September 2019
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Investment Consultant

Scotland / Scotland, Edinburgh / London, England
Up to £70000.00 per annum
Reference
148689

Market Risk Capital Actuary/Quant

London (Central)
£65,000 - £115,000 plus bonus and package
Reference
148688

Experience Analysis Contractor

England
Negotiable
Reference
148687
See all jobs »
 
 
 
 

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

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ