IMF Working Papers

Accounting Standards and Insurer Solvency Assessment

By Peter Windsor, Jeffery Yong, Michelle Chong-Tai Bell

July 31, 2020

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Peter Windsor, Jeffery Yong, and Michelle Chong-Tai Bell. Accounting Standards and Insurer Solvency Assessment, (USA: International Monetary Fund, 2020) accessed September 20, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The paper explores the use of accounting standards for insurer solvency assessment in the context of the implementation of IFRS 17. The paper is based on the results of a survey of 20 insurance supervisors. Overall, IFRS 17 is a welcome development but there will be challenges of implementation. Not many insurance supervisors currently intend to use IFRS 17 as a basis for solvency assessment of insurers. Perceived shortcomings can be overcome by supervisors providing clear specifications where the principles-based standard allows a range of approaches. Accounting standards can provide a ready-made valuation framework for supervisors developing new solvency frameworks.

Subject: Accounting standards, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Insurance, Insurance companies, International Financial Reporting Standards, Public financial management (PFM), Solvency

Keywords: Accounting practice, Accounting standards, Africa, Capital, Global, IFRS, IFRS 17, Impact study, Insurance, Insurance companies, Insurance contract, Insurance liability, Insurance supervisor, Insurers, International Financial Reporting Standards, Measurement approach, Solvency, Solvency position, Supervision, Supervisors, WP

Publication Details

  • Pages:

    47

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2020/146

  • Stock No:

    WPIEA2020146

  • ISBN:

    9781513551807

  • ISSN:

    1018-5941