The Financial Supervisory Service (FSS) has rejected the insurance industry' request to delay the implementation of "K-Insurance Capital Standard (ICS), a new insurance liability market valuation system.
The FSS said: “The system will take effect in 2021 as scheduled.”
The insurance industry says that it would suffer a growing burden when the new financial reporting standard IFRS 17 and the K-ICS are implemented at the same time in 2021, reports Business Korea.
An FSS official explained recently: “With the introduction of the IFRS 17, the available and demanded capital calculation method under the current risk based capital (RBC) system also needs to be completely revised as a way for the market-to-market liability valuation. In this respect, it is inevitable to introduce the IFRS17 and the K-ICS at the same time.”
The FSS said it is possible to phase in the systems and is planning to evaluate the impact assessment again next year and decide on a concrete implementation plan at the end of next year.