The Financial Stability Board (FSB) has today published a statement welcoming the new insurance contracts Standard, IFRS 17, which was issued by the International Accounting Standards Board (Board) in May 2017.
The FSB identified the completion of IFRS 17 as a high priority at its September 2015 Plenary meeting. Now, the FSB has published a statement welcoming the issuance of the Standard, stressing the importance of insurers starting the process to implement the Standard as soon as possible and highlighting the significance of proper application.
Insurers have until 2021 to implement the new Standard, which requires all insurance contracts to be accounted for in a consistent manner. IFRS 17 will help investors and others better understand insurers' risk exposure, profitability and financial position.
Hans Hoogervorst, Chairman of the Board, said:
IFRS 17 will provide important insight into insurance companies' risk exposure and performance, which—in turn—will contribute to financial stability. It is therefore an important contribution to the FSB's mission of strengthening the stability in the financial sector.
The Board is a member of the FSB, and IFRS Standards are among the Key Standards for Sound Financial Systems defined by the FSB.
Read the full FSB statement.