The London-headquartered International Accounting Standards Board (IASB) has an important call to answer – that from insurance associations who believe that the International Financial Reporting Standard 17 (IFRS 17) must not be implemented as planned.
Uniting to express their concerns, nine trade bodies wrote to IASB chair Hans Hoogervorst in efforts to draw attention to two things. One is the need to delay the implementation by two years from 2021, and the second to improve the reporting standard before rolling it out.
“We can confirm that the topics raised by the European CFO Forum in their presentation to the EFRAG (European Financial Reporting Advisory Group) board on July 03 encompass our range of concerns and need to be addressed,” wrote the associations in the letter seen by Insurance Business. “In addition, there are serious operational constraints on insurers’ ability to successfully implement IFRS 17 on the current timelines.
“The industry recognises its responsibility for proposing solutions and we are liaising across our markets with the aim of providing timely progress on the necessary improvements to IFRS 17.”
The letter was signed by Leon Campher, chief executive of the Association for Savings and Investment South Africa; Stephen Frank, president & CEO, Canadian Life & Health Insurance Association; Richard Klipin, CEO, Financial Service Council of New Zealand; Yong-Duk Kim, chair & CEO, General Insurance Association of Korea; Don Forgeron, ICD.D, president & CEO, Insurance Bureau of Canada; Robert Whelan, executive director & CEO, Insurance Council of Australia; Tim Grafton, CEO, Insurance Council of New Zealand; Olav Jones, deputy director general, Insurance Europe; and Shin Yong-Kil, chair & CEO, Korea Life Insurance Association.
Citing the number of signatories from around the world, Insurance Europe stressed both the importance and urgency to decide on the timeline and for the IASB to move forward on the necessary improvements.