The introduction of IFRS 17 is one of the largest regulatory shocks to the insurance industry in the past decade. At heart, the accounting standard attempts to combine traditional reporting with forward-looking actuarial calculations.
The insurance sector is preparing for the implementation of IFRS 17. A great deal of attention is paid to modeling and the consequences for (finance and risk) policy. In addition to complying with the regulations, the implementation of IFRS 17 also offers an opportunity to bring the worlds of finance and risk closer together. Experiences from other areas of the financial sector could then prove useful. Yvonne Sijm, director at Zanders, explains.
More than a necessary evil
Because of regulations such as Basel II and Solvency II, risk management is high on the agenda of all financial institutions and many companies. Since the credit crisis began, everyone knows exactly why. The crisis will be with us for a while yet, and the regulatory burden will only intensify over the coming period. All the more reason to support this crucial process with an intelligent risk management system (RMS).