Forward-thinking insurers are starting to prepare their roadmap for IFRS 17. While we still do not have a final standard, understanding the details of the new presentations and disclosures on your organization should be a priority.
The International Accounting Standards Board (IASB) has tentatively agreed to allow a period of approximately three years after the issuance of IFRS 17 for its implementation. Many insurers, in particular those that will apply the building block approach (BBA), will need to use all of this period given the complexity of the new requirements.
We believe it is important that insurers consider what they should be doing now and what they can defer until after the publication of the forthcoming insurance contracts standard. This thinking will be influenced by the insurers current accounting regime; the extent to which they have implemented new regulatory frameworks, or capital models, that may be leveraged; the maturity of their finance function; and their strategic finance, actuarial and IT agenda.
KPMG International and our network of accounting change professionals believe that it the best way forward is to develop a clear understanding of how these components will interact, and use the time available before the standard is issued to draw up an implementation roadmap covering activities for the next 3 to 5 years.
Contact the local KPMG office in your home country, or email us at firstname.lastname@example.org to learn more.