FBK Grant Thornton About Transition to IFRS 17

Experts of the Department of Assurance and Advisory to Financial Institutions have arranged a business breakfast dedicated to relevant insurance-related issues.

Attendees discussed the most complicated aspects of IFRS 17. The new recognition and accounting procedure for insurance and reinsurance contracts was analysed using case studies. The second part of the business breakfast addressed new requirements set by the Central Bank of Russia to financial soundness and solvency of insurance providers founded on the risk-based concept Solvency II.

Maksim Chikishev, Head of Advisory to Insurance Companies, pointed out that insurance companies need to estimate the capital amount in case of the new approach and if it is not adequate, make prompt risk mitigation or capital increase decisions.

In conclusion, Anastasia Terekhina, an Associate Director of the Department of Assurance and Advisory to Financial Institutions, said, “New insurance trends, new accounting standards, new regulations, all those circumstances change the way insurance companies should manage corporate risks and business processes. Financial, actuarial, risk management and IT departments become more important”.

The business breakfast brought together heads of financial and actuarial departments, chief accountants and other financial experts from big insurance companies. The event was supported by Homnet Consulting, a leading Russian developer and systems integrator of 1C-based software for financial and holding companies, that shared automation solutions to account for insurance contracts in accordance with new requirements.

Road Map for Transition to IFRS 17 (PDF) (in Russian)