Make changes early to avoid unnecessary costs and disruptions
We all know that Solvency II has been delayed. And with a three year grace period for implementing the International Financial Reporting Standards for Insurance contracts (IFRS Phase II) once introduced in 2014, it’s not surprising that most finance functions are breathing a sigh of relief.
In our latest report ‘Laying the foundations for the future of insurance reporting’ we make a case for taking a very different type response.
We believe that insurers should move towards adoption of both Pillar 3 and IFRS Phase II now in order to minimise the expense and disruption that introducing each regime separately would bring. Particularly in the areas of data management, modelling and investor relations.
Delivering the benefits of early adoption however will still require careful planning. Despite the many similarities between both Solvency II and IFRS Phase II, there are also some differences. Identifying those differences, and planning for the awkward questions that they may bring from analysts and investors, will be key to your success.
The rewards however are there for the taking for those brave enough to act now.