2018年-德勤全球_Global_IFRS_Insurance_Survey_2018_38页_2mb

Global IFRS Insurance Survey 2018 Summary

Core Content

The Global IFRS Insurance Survey 2018 provides an analysis of 340 insurance executives' views on their preparation for the implementation of IFRS 17, the new international accounting standard for insurance contracts. The survey highlights the industry's progress, challenges, and expectations regarding the transition to IFRS 17, which becomes effective on January 1, 2021.

Main Objectives of IFRS 17

• To introduce a single, principle-based framework for accounting for all types of insurance contracts.
• To enhance transparency and standardization in financial statements.
• To align insurance accounting with IFRS principles in other industries.
• To require restatement of prior financial records as if IFRS 17 had always applied.

Key Findings

Confidence in Compliance

• 45% of insurers are very confident they will be compliant by the effective date.
• 45% are somewhat confident, while 1% are not confident.
• Health insurers show the highest confidence (60% very confident), while life insurers are the least confident (37% very confident).
• Europe is more confident than Asia, with 55% of European insurers very confident compared to 45% in Asia.

Implementation Challenges

• The largest challenge is reviewing operating models of actuarial, finance, and risk functions.
• Preparing investor relations and financial communications is also a major hurdle.
• Data availability and quality and developing new technology solutions are the next three most difficult steps.
• Life insurers face greater challenges due to the long coverage periods of their contracts.
• Reinsurers struggle with establishing program management teams.
• Composite insurers report the review of operating models as their greatest challenge.

Technology Upgrades

• 87% of insurers report that their systems technology will require upgrades.
• 36% of the 13% who said upgrades would be significant are life insurers.
• The main technology challenges include:
  • Capturing data inputs
  • Running the necessary calculations
• Only 21% are very confident they have enough time to implement the required technology.
• Finding the right software solutions is a challenge for 24% of insurers.
• Most respondents are using a combination of external vendors and in-house capabilities to address this.

Implementation Costs

• 35% of insurers expect to spend more than €50m on compliance.
• In 2013, only 7% of insurers expected to spend this amount.
• Budgets are divided relatively evenly among:
  • Technology upgrades
  • External consulting
  • Expanding internal teams
  • Engaging contractors for IT solutions
• Reinsurers and composite insurers allocate a higher percentage of their budgets to technology and contractors.

Skills and Collaboration

• Actuarial, accounting, and collaboration skills are in high demand.
• Collaboration skills are cited as equally important as actuarial skills.
• Insurers report difficulty in finding actuarial and accounting expertise.

Financial Impacts

• 56% of insurers expect lower net assets or equity after compliance.
• 14% believe this will be due to an increase in insurance liabilities.
• The rest expect the reduction to come from other restatement requirements.
• 53% are more certain that profit volatility will be lower.
• Over half expect profits to emerge more slowly.

Stakeholder Awareness

• Stakeholder awareness is growing.
• In 2013, 69% of insurers had not started preparing for investor relations and financial communications.
• In 2018, only 8% report not starting these efforts, with 52% indicating minimal to no difficulty.
• However, confidence in the effectiveness of these communications remains low (only 33% are confident that stakeholders understand the implications of IFRS 17).

Benefits vs Costs

• 93% of insurers now believe the benefits will outweigh the costs.
• In 2013, only 21% held this view.
• The top three benefits are:
  • Financial statements that better reflect business performance
  • Easier access to capital markets
  • Improved information for product design
• Asia shows a stronger focus on improved financial statements.
• Composite insurers value greater transparency in financial reporting.

Conclusion

The insurance industry is moving forward with accelerated pace and cautious optimism in preparing for the implementation of IFRS 17. While most insurers are confident they can meet the compliance deadline, challenges remain, particularly in technology upgrades, data management, and stakeholder communication. The costs of implementation are expected to be substantial, with a greater focus on technology and specialized talent. The benefits of IFRS 17, such as greater transparency and standardization, are increasingly seen as strategic advantages, though some concerns remain about the interpretation and application of the standard across different jurisdictions.

Key Takeaways Summary

• Confidence in compliance is growing, with 45% very confident and 45% somewhat confident.
• Technology upgrades are necessary for most insurers, especially life insurers.
• Implementation costs have increased significantly, with 35% expecting to spend over €50m.
• Actuarial and accounting expertise is in high demand.
• Stakeholder awareness is improving, but confidence in communication effectiveness is still low.
• Benefits are seen as outweighing costs, with financial transparency and capital market access as the main advantages.
• Regional and insurer-type differences are evident, with Europe and health insurers being more confident, and Asia and life insurers facing greater challenges.