The IFRS Journey in Insurance
A look beyond the accounting changes
The use of International Financial Reporting Standards (IFRS) is on the rise across the globe. The transition to new accounting policies under IFRS requires a change in mindset, presenting companies with both challenges and opportunities.
In some markets, IFRS will likely contribute to substantial changes in:
- Insurance product design, price and offerings
- Investment strategy
- Risk management practices
- Merger and acquisition (M&A) activity
These changes will give rise to pressure for both convergence and divergence across insurance lines, thereby adding complexity and dynamism to the market structure of the insurance industry.
By taking a proactive approach to understanding the impact of IFRS implementation on key business strategies, insurers can avoid the risk of being unprepared for the industry wide shift while seizing on emerging opportunities for differentiation from competition.