Market Overview

A.M. BestTV: Incoming IFRS Standard Promotes Consistency Across Regions, Says A.M. Best Senior Director

Share:

In this A.M.BestTV episode, Carlos Wong-Fupuy, senior
director, A.M. Best, examines the impact the latest International
Financial Reporting Standards, or IFRS 17, which takes effect in 2021.
Click on http://www.ambest.com/v.asp?v=mexicoelection718
to view the entire program.

The new IFRS 17 is expected to have a significant impact on the
insurance industry, and although IFRS 17 will mainly effect life
companies, Wong-Fupuy said non-life companies should not disregard it.

"IFRS 17 does not make an explicit distinction between life and non-life
businesses," said Wong-Fupuy. "There is a general model that is probably
most appropriate for life business. …Nevertheless, bear in mind that
there are a number of non-life companies writing multi-year business,
with large corporate and liability risks; therefore, by no means can
companies think that they are outside the scope of IFRS 17."

Wong-Fupuy also said he believes that there will be no significant
impact on how A.M. Best analyzes a company's financial strength.

"In terms of immediate impact, I would not expect anything significant.
The A.M. Best approach is always to try to see a company from an
economic point of view. To the extent that the current accounting
standards are reflecting that economic reality, I would not expect
significant differences."

To access a copy of this briefing, titled, "IFRS 17—Enhanced
Transparency Will Be Worth the Effort for Insurers," visit http://www3.ambest.com/bestweek/purchase.asp?record_code=275655.

Recent episodes of A.M.BestTV include:

  • Political Changes in Mexico Could Create Opportunities for
    Insurers, Say A.M. Best Analysts
    : Alfonso Novelo, director of
    analytics, and Eli Sanchez, senior financial analyst, both of A.M.
    Best, say the change in administration in Mexico could affect the
    environment for health and agricultural insurance coverages, among
    other areas: http://www.ambest.com/v.asp?v=mexicoelection718.
  • European Insurers Face a Three-Sided Risk Front, Say A.M. Best
    Analysts
    : Greg Carter, managing director, analytics, Catherine
    Thomas and Mahesh Mistry, both senior directors, analytics, A.M. Best,
    said insurers in Europe's insurance markets face a mixture of economic
    risks, which are tied to interest rates, inflation and geopolitical
    risks, as well as traditional insurance underwriting risks: http://www.ambest.com/v.asp?v=europeanmarket818.
  • How A.M. Best Analysts Evaluate Mortgage-Related Insurance-Linked
    Securities Transactions
    : Emmanuel Modu, managing director,
    insurance-linked securities, and Wai Tang, director, insurance-linked
    securities, A.M. Best, examine how the rating agency evaluates
    mortgage-related insurance-linked securities transactions: http://www.ambest.com/v.asp?v=mortgageils818.
  • IMCA: Account-Based Focus and Digital Strategies Are Remaking
    Insurance
    : Marketers at the Insurance Marketing and Communications
    Association Conference said their challenge is to keep up with
    fast-changing technologies, competition, branding and aligning their
    work with other internal departments: http://www.ambest.com/v.asp?v=imca718.

A.M.BestTV covers exclusive A.M. Best information and
reports, targeted topics and key developments in the (re)insurance
industry every Monday, Wednesday and Friday. Sign up for alerts of
episodes at http://www.ambest.com/multimedia/ambtvsignup.html.
View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Company, Inc. and/or its
affiliates
. ALL RIGHTS RESERVED.

View Comments and Join the Discussion!