Financial Services Ireland

IFRS17 Delay: Consideration on how insurers can respond

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IFRS17 Delay: Consideration on how insurers can respond

With the IASB announcing a proposed one-year delay to the implementation date of IFRS 17 (and IFRS 9), and also proposing to make some limited changes to its requirements, insurers are asking what this means for their implementation efforts and how best to respond.

We recommend an approach to help the management and/or the IFRS 17 Program Steering Committee make clear decisions on the way forward through a period of uncertainty.

It is important to understand the impact of the delay on the program and the flexibility that any potential changes to the standard may offer. Then insurers should evaluate the alternative to be considered at both work stream and program level.

Evaluating the impacts
We recommend a three step approach to evaluating the impacts of the IFRS 17 delay;

  1. Take stock of your current position of your IFRS17 program
  2. Consider the impacts of any possible and proposed changes to the requirements of IRFS 17 and the expected timing of those changes
  3. Assess the flexibility that any change to the timetable might offer to the program

Assessing the options
Once the assessment of the impacts has been carried out, insurers should consider the broad options at both a program and work stream level.

There are three potential options, the pros and cons of which we explore below. The options are:

  1. Continue the program as to the current timetable (either to completion or to deliver the main key milestones)
  2. Reconfiguration or retiming of parts of the program (on a piece by piece basis) to meet the new timetable
  3. Slowing activity immediately and planning to restart planned activities at a later date

Read our latest publication below, which sets out EY’s recommended approach to making clear decisions on the way forward, through this period of uncertainty. We see three potential options for insurance companies.

These are:

  1. Continue the program as is to the current timeline (either to completion or to deliver the main key milestones)
  2. Reconfiguration or re-phasing parts of the program (on a piece by piece basis) to meet the new timetable
  3. Slowing activity immediately and planning to restart planned activities at a later date

If you would like to discuss further, please don’t hesitate to contact us.

Thought Leaders


Ciara McKenna

Partner

James Maher

Insurance, Sector Leader