Amid a shifting regulatory landscape, an industry poll found that 33% of insurers consider implementation challenges their biggest concern when it comes to the new accounting standard for insurance contracts.
Stephen Makin, head of risk and capital management at Hymans Robertson, commented: “It is no surprise that implementation challenges – covering system changes, new data requirements, resource needs, and the inevitable cost implications – were of chief concern in our poll.”
He said the scale of the task at hand should not be underestimated, especially when combined with the complexities of managing the one-off transition by 2021.
Other concerns raised include back-book transition and impact on reported profits.
“The distribution of responses shows that concerns within the insurance industry are wide-ranging when it comes to implementing the new accounting standard. Adopting IFRS 17 will affect almost every aspect of the business and will require a much greater involvement of actuaries in profit reporting than the industry has been used to,” noted Makin.
The poll was conducted by Hymans Robertson during a webinar where attendees gathered to discuss the challenges and opportunities IFRS 17 will present to those in the insurance industry. More than 100 industry professionals were polled.
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