Accounting Standards and Insurer Solvency Assessment

IMF Working Papers, July 31, 2020

Source details

Explores the use of accounting standards for insurer solvency assessment in the context of the implementation of IFRS 17.
Based on the results of a survey of 20 insurance supervisors.

IFRS 17 is generally viewed as a welcome development.
There will be challenges of implementation associated with IFRS 17.
Not many insurance supervisors currently intend to use IFRS 17 as a basis for solvency assessment of insurers.
Perceived shortcomings of IFRS 17 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.

Subjects: 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

Series: Working Paper No. 2020/146
Stock No: WPIEA2020146
Format availability: PDF and other formats via IMF eLibrary
Citation example (Chicago, as provided): Peter Windsor, Jeffery Yong, and Michelle Chong-Tai Bell. "Accounting Standards and Insurer Solvency Assessment", IMF Working Papers 2020, 146 (2020), accessed 9/18/2026, https://doi.org/10.5089/9781513551807.001

Imf Working Paper No. 2020/146, July 31, 2020.