We surveyed global insurance companies to look at readiness, perceptions, technology and the impact IFRS 17 may have beyond 2023.
Deloitte sponsored the Economist Impact to survey 360 insurance executives who are engaged in the implementation of IFRS 17. This research has produced new insights on the collective view of the insurance industry on IFRS 17.
Our key findings are around four major themes:
- The industry assessment on the level playing field that could emerge from the adoption of IFRS 17 in over 100 countries from 2023. We report their view on the impact of the decision of the European Union (EU) to offer the option to avoid compliance with a key IFRS 17 requirement for certain material classes of life insurance contracts. This option is only available to insurers based in the EU.
- A view on the technology dimension of IFRS 17. All participants acknowledged that this is the most material aspect of their journey. We analyse the scale of the change in systems triggered by IFRS 17. The view on how insurance companies approached the procurement of solutions and their integration in the broader architecture offers a final perspective from a juncture where work was nearly completed.
- The preparation of the new financial results under IFRS 17. The theme of managing expectations across internal and external stakeholders brings a wide range of perspectives, both in terms of the state of readiness in June 2022 and elements that would form the investor relations strategy for 2023. During 2023, insurance companies will publish the equivalent of an avalanche of new financial information under IFRS 17. We look at approaches that may be used to manage this.
- Post-implementation. Our survey asked about the appetite of insurance executives to embrace the momentum of change triggered by IFRS 17. Are companies using IFRS 17 as a catalyst for continuing a modernisation journey for finance and actuarial functions? We look at the perceived benefits - exploring the recent experience as well as the unfulfilled modernisation ambitions insurance executives may have for their finance functions.
Additionally, we have published a statistical compendium that shares allof the data from the Economist Impact survey to enable you to go deeper intospecific areas of interest.