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FSB urges insurers to begin implementation of IFRS 17 as soon as possible

Jul 28, 2017
The Financial Stability Board (FSB) has urged insurers to begin the process of implementing the new insurance contracts Standard, IFRS 17, as soon as possible while remaining cognisant of the significance of proper application.
The completion of IFRS 17 was identified by the FSB as a high priority at its September 2015 Plenary meeting.
Insurers have until 2021 to implement the new standard, which requires all insurance contracts to be accounted for in a consistent manner.

A better understanding

IFRS 17 will help investors and others better understand insurers’ risk exposure, profitability and financial position.
According to Hans Hoogervorst, Chairman of the IASB, “IFRS 17 will provide important insight into insurance companies’ risk exposure and performance, which in turn will contribute to financial stability. It is therefore an important contribution to the FSB’s mission of strengthening the stability in the financial sector.
The IASB is a member of the FSB, and IFRS Standards are among the Key Standards for Sound Financial Systems defined by the FSB.
Source: Financial Stability Board.