Possible delay of IFRS 17? Recently voices have been raised in this regards. As a result Insurance Europe, the European insurance and reinsurance federation, has called for the new IFRS 17 standard to be reopened. And that the implementation of IFRS 17 is delayed by two years. The reason would be to address several underlying issues and allow time for companies to prepare.
It said that the additional time would allow re/insurers to deal with operational constraints. For instance the current lack of software solutions. This would also promote implementation of suitable quality and reliability.
A number of insurance companies are in agreement with their position but no decisions are yet taken. Comparing with Solvency II it is not unlikely that we do see some delays. We will continue to monitor the development.
To summarise, the federation said that studies by the European Financial Reporting Advisory Group (EFRAG) had identified 11 issues. These cover the way the new accounting standard depicts insurers’ performance and business models. According to EFRAG they must be resolved before IFRS 17 can be endorsed.
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