Delay IFRS 17 - new milestones (part 3 of 3)

Now is a great time to check whether plans previously made are still going to you the best outcome. Here are the revised implementation milestones for IFRS 17

Comparative Accounts

Comparative accounts will only be mandatory for 2021. However, investors may demand more. Insurers face a choice whether to undertake those comparatives ‘live’ (during 2021), ‘retrospecitvely’ (in 2022) or outsource them to a third party (2021 or 2022). This will be a key decision that drives timing.

 Delivery Teams

Most insurers have commenced some work on the technical aspects of IFRS 17 or started engagement with external suppliers, but not mobilized full size delivery teams. The number of people involved will climb steadily and peak in 2019 and 2020. Experienced resources are likely to be scarce and expensive during this period.

 Key actions

Plans and procurement strategies can be revised to optimise the lessons learnt over the last twelve months. Many insurers have placed emphasis on interpretation and calculation engines. Less effort has been put into:

a.    resolving governance issues (such as the relationship between actuarial and accounting teams),

b.    planning business processes or TOMs,

c.    planning systems changes,

d.    planning organization changes,

e.    alignment of accounting policies across business units,

f.    setting data standards,

g.    or even setting up value-for-money procurements.

As change management specialists, we will be supporting organisations as they navigate and implement the biggest change the insurance industry has seen in a generation. Now is the right time for insurers to confirm their planning.