Insurance associations call on the International Accounting Standards Board (IASB) for a delay of the IFRS 17 for insurance contracts

Insurance associations call on the International Accounting Standards Board (IASB) for a delay of the IFRS 17 for insurance contracts

BRUSSELS, 18-Oct-2018 — /EuropaWire/ — A global group of nine insurance associations has written a joint letter to Hans Hoogervorst, chair of the International Accounting Standards Board (IASB), that highlights the industry’s concerns about the International Financial Reporting Standard (IFRS) 17 for insurance contracts.

Extensive testing, together with insurers’ detailed implementation planning, has confirmed that a number of important issues still need to be resolved in order to ensure the quality and operational practicability of the new standard.

There is also industry-wide agreement that a delay of two years is needed, both to allow for the necessary improvements to be made to the standard and for adequate time for companies to tackle the significant implementation challenges that IFRS 17 presents.

The fact that so many insurance associations from around the world have signed this letter demonstrates the importance and urgency to have a decision on a delay and for the IASB to move forward on the necessary improvements.

Notes for editors

1. The full letter is available here.
2. The important issues that need to be resolved are listed in this European CFO Forum presentation from slide 8 onwards.  Note that the CFO Forum has also committed to develop solutions to all the issues raised and to share these with the IASB and EFRAG before the end of October.

SOURCE:  Insurance Europe

For all media enquiries contact Richard Mackillican, +32 2 894 30 69 or [lastname]@insuranceeurope.eu