RNA Analytics Spokesperson – Alex Tsai, Head of Greater China

New changes are fast approaching financial reporting. With the arrival of IFRS 17, a completely new set of standards, calculations and criteria will apply. Following the recent extension of the implementation date, insurers across the globe are re-evaluating the input needed to transition from the old frameworks to the new.

헤드라인 구현은 금융 및 보험 수리 팀을 위한 비즈니스 기능의 많은 영역에 도전할 것입니다. 내부 기능을 조정하는 것부터 새로운 규칙이 가져올 복잡성과 중단관리에 이르기까지 IFRS 17은 대차대조표 변동성의 증가와 필요한 세부 수준으로 정확한 정보를 얻을 필요가 있습니다. 이러한 광범위하고 어려운 작업 외에도 다양한 준비 단계에 있는 여러 국가의 기업들이 제기하는 상당한 도전이 있으며, 이는 그 자체로 더 많은 비용이 드는 구현으로 이어질 수 있습니다.

Looking East, the picture is mixed when reviewing the levels of preparation and readiness. In Hong Kong, despite a prolonged period of civil unrest and more recently COVID19-related disruption, there is evidence of steady progress. Hong Kong is working to the global schedule, leaving insurers there with a two-year window until 2023. For global companies there with headquarters in Europe, preparations are thought to be going well. The same may not be said for local insurers, however, where a sense of urgency has not yet become apparent.

In Taiwan, meanwhile, implementation has been observed to be somewhat varied, with many insurers looking for a three-year extension until 2026 and regulators keeping a watchful eye on progress among local insurance organisations. Right now, firms are beginning to formulate implementation plans, which is itself a requirement of the local regulator as part of the monitoring process. In terms of its own deadline, therefore, progress seems positive.

In Mainland China, a local version of the standard will be released by the end of this year, despite some initial concerns about its adoption. Though the schedule for that is not yet firm, the industry is scaling up to have the resources to head it up both internally and externally.

Part of a cautious approach in the region has been to look at every detail of IFRS 17, as well as to learn from other countries. In the case of both China and Taiwan, they are looking to Korea (which is working to the global schedule). In that sense, these two countries are far from behind, and this efficient approach will save them time and resources in the long run.

IFRS 17은 대만과 중국의 많은 보험 회사가 새로운 기준을 기대하여 거의 2 년 동안 의식해 온 수익 인식 및 자본 구조에 상당한 영향을 미칠 것으로 예상됩니다.

Additionally, before IFRS 17 was introduced to this market, asset liability management was quite a new concept for insurance companies in Asia. This will have fundamental impacts on product offerings – particularly for those with direct links to investment portfolios. Whereas products in both Hong Kong and Taiwan already reflect some of these changes and moving forward, some will no longer be financially or operationally viable. It is also likely that life insurers will feel much of the pressure here, rather than non-life.

With much of the Asia-Pacific (APAC) region set to delay implementation by up to four years, there will of course be more time to think about the role that technology may play.  Many life and non-life insurers are showing a keen interest in all the latest developments in technology development for the arena, including a broader interest in the changing role of the actuary.

As it currently stands, with countries and companies at such different stages of preparation, there is much work to do before the original purpose of IFRS 17 can be fulfilled and utilised to its full potential. Such varied levels of progress with implementation makes reconciling numbers and providing investors with clear financial statements a very difficult task, both for insurers and investors.

오늘날의 삶과 비생명 보험사의 경우, RNA Analytics 컨설팅 전문 지식,글로벌 도달 범위 및 조직이 IFRS 17의 과제를 극복하는 데 도움이 되는 맞춤형 및 확장 가능한 소프트웨어 솔루션을 제공할 수 있는 기능을 보유하고 있습니다. 유럽 전역과 한국, 대만, 중국, 일본, 홍콩까지 뻗어 있는 우리 보험팀은 지원할 준비가 되어 있습니다.