EFRAG noted that they were as surprised as the IASB that the insurance industry, having apparently supported the direction of the IASB's project, should now be shifting in a number of directions! What did this mean for the project?
The IASB noted that outreach and comments received to date noted that insurers did not want any (or at least wanted less) volatility in profit and loss. This might be achieved by 'unlocking' the residual margin in some way; greater use of other comprehensive income; or a greater use of amortised cost. The suggestion that IFRS 9 might be opened to re-introduce an 'available for sale' classification had little chance of gaining sufficient support on the IASB: such a suggestion was to cross a 'red line' for the IASB.
The staff noted also that significant resources—at the FASB as well as at the IASB—were being allocated to outreach and post-exposure activities. It was also noted that successful completion of the insurance project was not critical to the SEC decision.