The IASB has tentatively agreed to propose to defer the temporary exemption for insurers to apply IFRS 9 to 2022. However, given the unique challenges insurers face, notably in minimising accounting mismatches between the measurement of financial assets under IFRS 9 and insurance liabilities under IFRS 17, insurance companies should be planning now for the implementation of IFRS 9 alongside IFRS 17.
The IFRS 9 changes are likely to have a significant impact on insurance companies, particularly those who currently hold amortised cost assets or make significant use of the Available for Sale category (“AFS”) under IAS 39. Companies should be planning how to assess the impact for their organisation and this publication sets out some key areas for consideration.
Insurers are required to disclose specific information relating to the adoption deferral in their financial statements from 2018 onwards. An example of an IFRS 9 deferral disclosure is also included in our guide.