How IFRS 17 changed two key P&C financial metrics
April 27, 2023 by David GambrillIFRS 17 will change the presentation of company results in 2023 Q1, eliminating one standard property and casualty insurance financial metric completely, and subtly affecting how combined operating ratios are presented. The most obvious and straightforward change will be doing…
Will IFRS 17 make insurers’ results harder to compare?
January 25, 2023 Philip PoradoAt best, it will be difficult to make initial comparisons to insurers’ IFRS 17 results, due to differences between companies’ approaches under the new accounting standard, said a report this week from Fitch Ratings. A stated objective of the insurance…
Does federal budget create new tax liability for P&C industry?
April 12, 2022 Greg MeckbachA federal budget proposal to forbid insurers from using a contractual service margin as a deductible reserve for tax purposes could impose a one-time tax liability on the industry. International Financial Reporting Standard 17 (IFRS 17) will “substantially change the…
Challenges remain as IFRS 17 implementation approaches
December 6, 2021 Jason ContantProject management, system implementation, and accessing resources are the biggest challenges, as the start date of the new insurance accounting standard IFRS 17 nears, Chris Cornell, partner, audit, and national sector leader, insurance, with KPMG in Canada told Canadian Underwriter…
Are you ready for the changes in IFRS 17?
September 22, 2021 by Jason ContantLearning how to “speak IFRS 17” will be an essential skill for insurers for both ongoing effective governance and communicating business performance to stakeholders, a partner at PwC Canada said. The changes in the upcoming insurance accounting standard can significantly…
How the feds propose to tax insurers’ deferred profits under IFRS 17
June 10, 2021 by David GambrillCanada’s finance department is looking to avoid a situation in which the new IFRS 17 accounting standards may give Canadian P&C insurers a tax advantage over other Canadian business sectors. Canadian P&C insurers are working hard to update to new…
What insurers are paying to deliver IFRS 17: Is there any bang for the buck?
June 9, 2021 by Jason ContantThe majority of insurers across the globe will spend US$20 million to implement the IFRS 17 insurance accounting standard into their operations, according to a new worldwide survey by Willis Towers Watson. The cost of implementation for Canadian P&C insurers…
How insurers are faring as IFRS 17 transition looms
April 29, 2021 by Jason ContantAs the transition date for the new insurance accounting standard IFRS 17 approaches in January 2022, insurers are split on whether or not to use dedicated staff for implementation. A recent study of about 25 insurance clients of PwC found…
Where insurers stand on OSFI’s reinsurance rules
April 28, 2021 by Jason ContantAlthough proposed draft reinsurance rules from the federal solvency regulator have not been finalized, the president and CEO of Insurance Bureau of Canada (IBC) is indicating that the regulator and Canadian P&C insurers may be bridging the gap. “I take…
With the pandemic abated, OSFI restarts work on IFRS 17
August 17, 2020 by David GambrillThree things in life are inevitable — death, taxes, and the transition to IFRS 17. With the country now over what appears to be the worst of the COVID-19 pandemic thus far, Canada’s solvency regulator, the Office of the Superintendent…
Accounting body proposes extension for IFRS 17
November 15, 2018 by David GambrillThe International Accounting Standards Board (IASB) has voted to propose a one-year deferral of the effective date for IFRS 17 to 2022. Insurance companies globally have lobbied for the extension as they prepare their transition to the International Financial Reporting…