Accounting Standards and Insurer Solvency Assessment

Author/Editor:

Peter Windsor ; Jeffery Yong ; Michelle Chong-Tai Bell

Publication Date:

July 31, 2020

Electronic Access:

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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. The Working Paper is also available on the website of the Bank for International Settlements as FSI Insights no 26 Accounting Standards and Insurer Solvency Assessment.

Series:

Working Paper No.20/146

Frequency:

regular

English

Publication Date:

July 31, 2020

ISBN/ISSN:

9781513551807/1018-5941

Stock No:

WPIEA2020146

Format:

Paper

Pages:

47

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