Data from 240 insurance companies reveal 92% of insurers have yet to put their IFRS 17 solutions in place and 88% recognise they need to invest in new processes to support disclosure requirements.
We are proud to publish our first bi-annual Global IFRS 17 Readiness Assessment Report (GIRA) to assist CFOs and their finance teams in addressing IFRS 17.
IFRS 17 is a new global accounting reporting standard for insurance contracts that affects every insurance company that reports under IFRS. Its purpose is to align insurance company reporting across the globe. The International Accounting Standards Board (IASB) suggests that 450 listed insurers use IFRS standards, which means approximately $13 trillion (£9.8 trillion) of total assets are impacted.
The GIRA report includes data from 240 insurance companies worldwide. We’ve been speaking with insurers of all sizes including those with gross written premiums (GWP) of over $50 billion and both life and non-life insurance companies. Key findings from the report show that insurance companies recognise the scale of the project and the significant risks to implementing IFRS 17. It also shows that the majority of insurers are beginning to take action but they are still at a very early stage in the planning and implementation process, considering change programmes are expected to run between 12-30 months.
Martin Redington, our Chief Technology Officer comments: “Many insurers are coming to grips with IFRS 17, identifying the paths to address the financial accounting change requirements as well as the opportunities to modernise their actuarial and finance systems environments. 88% of insurers we spoke to recognise the need to invest in new processes to support IFRS 17 disclosure requirements. We are working with CFOs and their finance teams to put software solutions in place to address the end-to-end IFRS 17 financial reporting process and to future proof their business capabilities.”
The GIRA report identifies a wide range of challenges that insurers need to overcome on their journey to implementation. To learn more, Download the GIRA Report here.
We will continue to publish the Global IFRS 17 Readiness Assessment Report on a bi-annual basis.
