Most insurers in Asia (93%) are confident or very confident about complying with IFRS17 by the effective date of 1 January 2021. This compared with 96% in Europe, 68% in Canada and the US, said Deloitte.
Yet, insurance companies in Asia report a much higher difficulty with the range of key complex facets of bringing insurers into IFRS17 compliance, than their counterparts in the other regions.
According to Deloitte’s Global IFRS Insurance Survey 2018, Asian insurers (46%) have greater difficulty particularly with reviewing the operating model of actuarial, finance and risk functions.
Educating and training staff, and preparing investor relations and financial communications for shareholders and markets - each at 44% - are also challenges facing them.
Despite the difficulties, Asia is the most enthusiastic about IFRS17’s benefits to financial statement reporting, said Deloitte, adding that insurers in the region also look forward to improving financial statements with IFRS17 implementation more than any other regions.
The survey, conducted by the EIU in February and March 2018, collected responses from 340 global insurers in China, South Korea, Canada, UK, France, Italy, Germany, Japan, Switzerland, Spain, Netherlands, and US. They are grouped in Asia, Europe, Canada and the US.
The respondents come from a range of insurance firms: non-life insurers (29%), reinsurers (20%), composite insurers (18%), life insurers (18%), and health insurers (15%). A