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


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
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

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