𝐁𝐀𝐃𝐑𝐈 𝐂𝐅𝐎 𝐑𝐨𝐮𝐧𝐝𝐭𝐚𝐛𝐥𝐞: 𝐈𝐅𝐑𝐒 17 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐂𝐅𝐎 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞
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. 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐡𝐚𝐬 𝐧𝐨𝐭 𝐛𝐞𝐞𝐧 𝐬𝐦𝐨𝐨𝐭𝐡 𝐬𝐚𝐢𝐥𝐢𝐧𝐠. 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. 𝐊𝐏𝐈𝐬 𝐰𝐢𝐥𝐥 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐜𝐡𝐚𝐧𝐠𝐞. Most companies will continue to track GWP internally but now this won’t 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. 𝐋𝐞𝐯𝐞𝐥 𝐨𝐟 𝐀𝐠𝐠𝐫𝐞𝐠𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐧𝐨𝐭 𝐜𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐭: 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 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞 𝐢𝐬 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐝 in some areas:
– 𝑨𝒕𝒕𝒓𝒊𝒃𝒖𝒕𝒂𝒃𝒍𝒆 𝒆𝒙𝒑𝒆𝒏𝒔𝒆𝒔 classification. Attributable expenses ranged from 20% to over 80% reflecting a wide range of views.
– 𝑺𝒆𝒈𝒎𝒆𝒏𝒕𝒂𝒍 𝒓𝒆𝒑𝒐𝒓𝒕𝒊𝒏𝒈. A wide range of practices have been observed in the market and there needs to be more consistency.
– 𝒀𝒊𝒆𝒍𝒅 𝒄𝒖𝒓𝒗𝒆. 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.