All material subject to strictly enforced copyright laws. © 2021 Insurance Insider is part of Euromoney Institutional Investor PLC.
Accessibility | Terms & Conditions | Privacy Policy | Modern Slavery Act | Cookies | Subscription Terms & Conditions

UK accounting body expects a ‘lot of noise’ from insurers on IFRS 17: Reuters

A new UK accounting body, set up after Brexit to adopt new international accounting standards for UK firms, is expecting a “lot of noise” from insurers as the IFRS 17 accounting rules are implemented, according to a Reuters report.

Pauline Wallace, chair of the UK Endorsement Board, told the news agency that the body will consult in November on the rules, which are due to be implemented globally from January 2023.

IFRS 17 is a global accounting regime that will constitute sweeping changes in how companies recognise long-term profits, making insurers recognise profits when insurance services are delivered, rather than when premium payments are received.

In a recent survey, Willis Towers Watson said the changes could cost the insurance sector between $15bn and $20bn.

Wallace told Reuters that the body was “running against quite a tight deadline” to implement the measures.

"The insurance industry is very good at making their views known. Insurance companies are not the only stakeholders in this,” she stated.

“Investors are very keen to see better accounting in insurance."

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree