Adoption of IFRS17 by PH insurance industry

  • 📰 TheManilaTimes
  • ⏱ Reading Time:
  • 44 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 42%
  • Publisher: 92%

Adoption News

Of,IFRS17,By

THE Philippine Insurance Industry is gearing up for the January 2025 start of the IFRS17, an international financial reporting standard for insurance contracts locally known as PFRS17.

However, in a survey conducted by PIRA, its trade association, 39 out of its 55 member companies have responded, saying only 16 out of the 39 companies are ready with a process to be able to provide the quantitative impact assessment that IFRS17 calls for, with the remaining 23 in various stages of being ready. It must be noted that IFRS17 has significant implications for the general insurance industry.Here are some of the pros and cons:Pros1. Increased transparency.

encourages better risk management practices and helps insurers manage their liabilities more effectively.4. Better performance measurement. The standard allows for a more accurate reflection of profit over time, aligning revenue recognition with the insurance coverage period. This helps stakeholders evaluate an insurer's performance on a more consistent basis.5. Focus on future cash flows.

involves significant costs related to system upgrades, staff training and potential consulting fees. For smaller insurers, these costs can be particularly burdensome.2. Complexity of implementation. The standard is complex and may require considerable effort to interpret and implement correctly. This could lead to inconsistencies in application, particularly among smaller firms or those with less robust infrastructure.3. Increased regulatory scrutiny.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Aboitiz pushes investment-friendly policies to boost renewables adoptionDefining the News
Source: MlaStandard - 🏆 20. / 55 Read more »