IFRS 17 – let's remind ourselves of our implementation objectives
Actuaries and accountants have been looking at the standard since the first drafts of IFRS 4 Phase II emerged. Innovation has been working on and sharing its project delivery perspective since 2014 with project delivery plans made available to all insurers.
IFRS 17 will fundamentally affect how investors regard insurers. It will change the profitability profiles of insurers between 2018 and 2023. If IFRS 17 isn’t planned for the whole business, then insurers will wind up in trouble.
We have noticed that most focus at most insurers has been on how to interpret the standard, not on how to deliver an operational business process or assure investors.
Now is the time to remind ourselves IFRS 17 / 9 is about: preparing an operational close process that works for each insurer; work how out to deal with realising profit on either side of the 2022 change; and keep investors happy. That makes just three delivery objectives:
1. Design and build a sensible close process for 2022* and beyond that complies to IFRS17/9 requirements
2. Derive a sensible call down of profit between 2018 and 2021 and then post January 2022
3. Assure investors that IFRS 17 (along with IFRS 16 in 2019) does not adversely affect the insurer’s market value
If you would like help in clarifying objectives and managing delivery email us at [email protected] or see our website
*2021 if you’re going to be smart
See also: