On February 7 the IASB continued its discussions on the concerns and implementation challenges arising from IFRS 17 and proposed two further amendments to the Standard to:
The Board agreed to retain the transition requirement that prohibits retrospective application of the risk mitigation option under the variable fee approach. It was noted that permitting retrospective application involved the use of hindsight and could give rise to ‘cherry picking’ opportunities. However, the Board acknowledged that the concerns raised by stakeholders are valid, and welcomed a discussion at a future meeting of alternative solutions to this issue that the staff are currently exploring.
For the remaining transition issues the Board agreed to retain the current requirements.
The Staff plans to bring papers on the remaining implementation concerns and challenges to the March 2019 meeting, along with potential sweep issues. The Board will also at a future meeting consider the package of all the proposed amendments to ensure they comply with the criteria the Board agreed in October 2018 and will consider the need for additional disclosures as a consequence of the proposed amendments. An exposure draft is still expected around the end of June 2019.
US Insurance Practice Leader, PwC US
Richard de Haan
Global Actuarial Leader, PwC US
Managing Director, National Professional Service Group, PwC US