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Insurance IFRS 17 series | Transition to IFRS 17

Insurance IFRS 17 series | Transition to IFRS 17

Progress of industry to date on implementation of the new IFRS 17 insurance accounting standard

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Director: Audit

KPMG in the Isle of Man

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In the next instalment of our IFRS 17 series, we explore the progress of industry to date on implementation of the new IFRS 17 insurance accounting standard.

As we work with insurers worldwide navigating the challenges, the single question we hear most often is: ‘How does my progress compare with my peers?’

To help answer the question, we surveyed 82 insurance executives around the world to benchmark their IFRS 17 and IFRS 9 readiness.

Insurers are navigating a new and unfamiliar world, interpreting two complex new standards while trying to guess when and how they will be applied locally.

Our report highlights their challenges and concerns for operationalising change of this magnitude:

  • 85 percent of respondents are still assessing the impact of the new standard or have not yet begun their assessment.
  • The majority are targeting readiness on or before 2021 to allow for dry-running of new processes; 5 percent plan for an implementation date after 2021 due to extended local transposition processes.
  • Almost eight out of ten executives foresee difficulties in securing sufficiently skilled people for implementation, as compared to six out of ten worried about securing the necessary budget.
  • Over half of respondents do not yet know whether they will buy or build a Contractual Service Margin (CSM) calculator – one of the key decisions in designing their target systems architecture.
  • Two-thirds of companies are keen to seize the opportunity to transform their business. Top opportunities include: systems modernisation, process optimisation, actuarial transformation and finance transformation.

The responses are thought-provoking and we are delighted to share with you our final report - Navigating change: Feedback from leading insurers on the frontline of IFRS 17 and IFRS 9 implementation.

© 2018 KPMG LLC, an Isle of Man Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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