IFRS 17 has arrived with style and it will be effective from 2021. Does IFRS 17 Startle your company? or Settles your company? How to use it to your advantage? Read on to know more.
pwc states that “ IFRS 17 is the biggest reporting change the insurance industry has witnessed in decades.”
When International Accounting Standards Board (IASB) published IFRS17 on 18th May of 2017, the Objective was to develop a general, high-quality standard that will address recognition, measurement, presentation and disclosure requirements for insurance contracts.
IFRS17 will be effective for annual reporting periods from Jan 2021 onwards.
How will the IFRS 17’s implementation impact your business?
Here are the answers:
- Brings major changes in business’ process and system.
- Departments in Insurance companies cannot work in Isolation anymore, greater Co-ordination will be demanded. Especially between departments like Finance and Actuarial.
- Change in Technical Infrastructure and the way the information is collected, analyzed and interpreted.
- Thus changing the business operations, financial systems and the R & D (mainly forecasting)
- It could be more complicated than the current versions so preparedness is recommended.
How can you be prepared for the Inevitable?
Here are my recommendations, comment if you know any.
- Investing time in Extensive detailed training
- Responsible leaders who bridge the can communication gap between Hierarchical differences.
- Setting up clear goals while implementation makes it easy and minimizes errors.
- IFRS 17 is an opportunity in itself if look at it as a chance to improve decade-old accounting and actuary system.
- Improved and Informed forecasting owing it to better storing and classification of historical data will help companies take low risk and growth promising decisions.
- Companies which are going down-hill can start fresh and be the company they always aimed to be with better implementation of plans and changing the processes and thus improving the effectiveness and efficiency.
Suggestion for Recruiters:
As teams have to maintain a balance between business transformation and daily operations. The required skill-set should be both Accounting and financial and Soft Skills like strategically thinking, leadership, KPI, statistical analysis and many more according to the designations.