๐๐๐๐๐ ๐๐ ๐ ๐๐จ๐ฎ๐ง๐๐ญ๐๐๐ฅ๐: ๐๐ ๐๐ 17 ๐๐ฆ๐ฉ๐ฅ๐๐ฆ๐๐ง๐ญ๐๐ญ๐ข๐จ๐ง ๐๐ซ๐จ๐ฆ ๐ญ๐ก๐ ๐๐ ๐ ๐ฉ๐๐ซ๐ฌ๐ฉ๐๐๐ญ๐ข๐ฏ๐
BADRI were honored to host the Chief Financial Officer (CFO) roundtable on 22nd June 2023 in the United Arab Emirates (UAE) with 19 UAE CFOs attending. The primary objective to address the challenges and opportunities related to the implementation of IFRS 17.
We want to thank all the CFOs that attended for this open and interactive session aimed to provide valuable insights and strategies to overcome operational obstacles, ensure effective compliance and most importantly provide a forum to share experiences.
The interactive discussion facilitated by BADRI served as a platform for collaboration, knowledge sharing, and problem-solving. The event featured engaging discussions, expert presentations, and interactive sessions, enabling participants to exchange ideas, best practices, and lessons learned.
The half day event encompassed various aspects critical to successful IFRS 17 implementations.
Key Highlights and Takeaways:
1. ๐๐ฆ๐ฉ๐ฅ๐๐ฆ๐๐ง๐ญ๐๐ญ๐ข๐จ๐ง ๐ก๐๐ฌ ๐ง๐จ๐ญ ๐๐๐๐ง ๐ฌ๐ฆ๐จ๐จ๐ญ๐ก ๐ฌ๐๐ข๐ฅ๐ข๐ง๐ . Over 85% of CFOs stated that the biggest challenges related to data and systems. In particular, segregation of receivables and payables data has been a major challenge.
2. ๐๐๐๐ฌ ๐ฐ๐ข๐ฅ๐ฅ ๐ง๐๐๐ ๐ญ๐จ ๐๐ก๐๐ง๐ ๐. Most companies will continue to track GWP internally but now this wonโt be available as a comparator with the market and there will be increased focus on profitability KPIs such as insurance service revenue and COR (although there were differences in views on what IFRS 17 COR should be).
3. ๐๐๐ฏ๐๐ฅ ๐จ๐ ๐๐ ๐ ๐ซ๐๐ ๐๐ญ๐ข๐จ๐ง ๐ข๐ฌ ๐ง๐จ๐ญ ๐๐จ๐ง๐ฌ๐ข๐ฌ๐ญ๐๐ง๐ญ: Around 40% of companies used a lower level of aggregation under IFRS 17 than the eForms LOB. This may make market comparisons more challenging.
4. Whilst IFRS 17 is principles based more ๐ ๐ฎ๐ข๐๐๐ง๐๐ ๐ข๐ฌ ๐ซ๐๐ช๐ฎ๐ข๐ซ๐๐ in some areas:
– ๐จ๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐ classification. Attributable expenses ranged from 20% to over 80% reflecting a wide range of views.
– ๐บ๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐. A wide range of practices have been observed in the market and there needs to be more consistency.
– ๐๐๐๐๐ ๐๐๐๐๐. Discounting was mainly based on EIOPA curves, but could a common UAE benchmark curve be used?
By fostering collaboration and knowledge sharing, BADRI will continue to play a vital role in helping companies navigate the complexities of IFRS 17 and achieve successful implementation while ensuring regulatory compliance and operational excellence. We look forward to the next forum.
