By January 1, 2023, insurers are expected to significantly change their accounting models, transitioning to abide by International Financial Reporting Standards 17 (IFRS 17) and the FASB’s Targeted Improvements for Long-Duration Contracts (LDTI) requirements. That may still seem a long way off, but the implementation effort required will be significant and insurers should get started now to prepare before the new standards take effect.
These new standards fundamentally change the way insurers and their stakeholders measure performance by changing the face of the financial statements and enhancing disclosure requirements. Virtually every aspect of an insurer’s business and operations will be affected, making planning, communication and coordination essential for effective implementation.
KPMG professionals stand ready to help insurers navigate and operationalize these complex regulatory changes. Our team comprises accounting, actuarial, finance, project management, data science and technology disciplines, providing practical insight to help insurers identify risks, understand new compliance requirements, plan necessary changes and support implementation.
KPMG can help insurers with -
- Updating actuarial models to produce IFRS 17 or LDTI compliant cash flows
- Modernization of legacy systems and processes
- Implementation of an accounting sub-ledger
- Creation of enhanced management reporting package and key performance indicators (KPIs)
- Updating accounting policies to comply with the new standards including LDTI, IFRS 17/9 and CECL
- Transformation of experience study process to meet new assumption requirements
- Support the development of an end-to-end governance and controls environment