LONDON, September 28, 2023 — Insurers have revealed major post-implementation challenges still need to be overcome after reporting their half-year 2023 results under IFRS 17 for the first time, according to a worldwide survey by WTW (NASDAQ: WTW).
The study, which polled 235 insurers from 37 countries/markets and is believed to be the industry’s most comprehensive IFRS 17 survey, includes 160 (68%) reporting for the first time during 2023.
With insurers facing hefty costs to implement IFRS 17, future investments need to be strategic and targeted, delivering quick and tangible benefits,”Kamran Foroughi | Global IFRS 17 Advisory Leader at WTW
The total cost faced by the global insurance industry to implement the IFRS 17 accounting standard is now estimated to be US$21-27bn. This represents a substantial 15% increase compared to the previous assessment made in 2022. Average cumulative programme costs for the largest multinationals are now predicted to be US$240m each, and US$30m each for the remaining insurers.
Kamran Foroughi, Global IFRS 17 Advisory Leader at WTW, said: “With insurers facing hefty costs to implement IFRS 17, future investments need to be strategic and targeted, delivering quick and tangible benefits. Substantial operational efficiencies also need to be found to maximise the benefits of IFRS 17 and move the reporting into business as usual.”
Now in its fourth year, the WTW IFRS 17 Survey was conducted during June to August 2023 and is based on responses from 235 insurers, including 25 large multinationals and the highest ever participation rate from Asia Pacific. The survey provides insurers the opportunity to benchmark their programmes against peers – comparing their plans, progress made and the challenges they are facing.
WTW’s Insurance Consulting and Technology business has over 1,600 colleagues operating in 35 markets worldwide. It is a leading provider of advice, solutions and software – primarily to the insurance industry. Its consulting services help clients manage risk and capital, improve business performance, and create competitive advantage – by focusing on financial and regulatory reporting, enterprise risk and capital management, M&A and corporate restructuring, products, pricing, business management and strategy.
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