IFRS 9 becomes effective for annual periods beginning on or after 1 January 2018, with earlier application permitted. As part of the public consultation on its draft endorsement advice on IFRS 9, EFRAG wished to gain more insight into the impact on users of the non-alignment of the effective dates of IFRS 9 and the future insurance contract standard, and further, on the advantages and drawbacks of a potential deferral of the effective date of IFRS 9 for insurance businesses.

EFRAG organised an outreach event for users that are following the insurance industry in order to gain a better understanding of the views of individual users.  In total 28 users were interviewed. 

The large majority (89%) expressed a preference of having both IFRS 9 and the future insurance contracts standard implemented by the insurance industry at the same time in a “big bang” approach.  Some had a preference for accelerating the implementation of the future insurance contracts standard or were neutral on a deferral of the effective date for the insurance industry.  Two thirds supported a deferral of the effective date of IFRS 9 for insurers with only 11% against.

The press release and full feedback statement are available on the EFRAG website.