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Deloitte issues results of global IFRS insurance survey

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Jul 18, 2018

On July 18, 2018, Deloitte has issued, 'Global IFRS Insurance Survey 2018: 2021 countdown underway — Insurers prepare for IFRS 17 im­ple­men­ta­tion', which aims to provide a com­pre­hen­sive view of insurers' reactions to the re­quire­ments in IFRS 17, as well as their per­cep­tions on the scale and com­plex­ity of this major reg­u­la­tory change, and the timelines sur­round­ing system im­ple­men­ta­tion necessary to achieve com­pli­ance.

Key findings of the survey include:

  • Just enough time to get ready
    Global insurers are cau­tiously confident that they will meet the im­ple­men­ta­tion date with 90 percent re­spond­ing that they believe they will be compliant by January 1, 2021. Of this total, 45 percent indicated strong con­fi­dence to finish on time, with health insurers being the more confident sub-group at 60 percent, and life insurers, with only 37 percent, being the more cautious sub-group. From a regional per­spec­tive, Europe is more confident than other regions.
  • Upgrading tech­nol­ogy is necessary
    87 percent of insurers believe their systems tech­nol­ogy will require upgrades to capture the new data and perform the cal­cu­la­tions required for com­pli­ance. Capturing data inputs was also cited as the largest tech­nol­ogy challenge.
  • Sig­nif­i­cant im­ple­men­ta­tion costs have been budgeted
    The majority of insurers have now set some ex­pec­ta­tions around budget, with results showing the expected spend to be sig­nif­i­cantly greater than ex­pec­ta­tions captured in 2013. 35 percent of insurers expect to spend more than EUR 50m to meet com­pli­ance, compared with only 7 percent five years ago.
  • Insurers are seeing more benefits vs. cost
    93 percent of global insurers feel that the benefits of adopting IFRS 17 will outweigh the cost of com­pli­ance. This is compared to only 21 percent in 2013.
  • Actuarial, accounting and col­lab­o­ra­tion skills will be in high demand
    Insurers cited col­lab­o­ra­tion skills as being equally as important as actuarial skills. Many of them said they would try to drive tighter in­te­gra­tion between finance, actuarial, and other de­part­ments. They also report having the greatest dif­fi­culty in finding actuarial and accounting expertise.

For more in­for­ma­tion, see the Global IFRS Insurance Survey 2018 and visit the survey page on Deloitte.​com.

 

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