Deloitte guides insurance companies on IFRS 17 standard
Source: Deloitte , Author: Posted by BI-ME staff
Posted: Mon January 22, 2018 5:11 pm

UAE. Deloitte Middle East held an awareness session on IFRS 17 – Insurance Contracts in Dubai in December 2017. This session was hosted by Deloitte’s IFRS 17 leaders who have been actively involved in developing Deloitte’s response to the accounting standard, together with Deloitte’s Global team.

The event was attended by regulators and business leaders representing leading insurance companies in the Middle East.

The International Accounting Standards Board (IASB) has published IFRS 17 on May 18, 2017 after years of deliberations. IFRS 17 supersedes IFRS 4 – Insurance Contracts and related interpretations, and is effective for periods beginning on or after January 1, 2021, with earlier adoption permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial instruments have also been applied.

Samir Madbak, Deloitte Middle East Insurance Industry Leader said: “Deloitte expects that implementing the new IFRS 17 requirements will entail major changes to insurance companies’ actuarial and finance reporting processes, operating model, systems and data.

This effort will likely generate implementation costs which are expected to be higher for life insurers than general insurers. The long-term coverage underpinning life insurance policies, together with the more common presence of options and guarantees in these policies, will require a much more granular set of accounting and actuarial data.”
“There will be drastic changes in the presentation of financial performance of insurance companies, which currently focuses on the gross written premium at large. The new reported profit approach considers amongst others items, the effects of contractual service margin, risk adjustment, economic and non-economic variances etc. which are relatively new terms”.

“The transition requirements, although simplified substantially late in the project, remain to be one of the most challenging aspects of the Standard, particularly for insurers with outstanding contract liabilities originated long before the date of transition,” concluded Sunder Nurani, Audit Partner, Deloitte Middle East.

Photo: For illustrative purposes only (File photo)

About Deloitte:
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients.

Please see for a more detailed description of DTTL and its member firms. 

Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 220,000 professionals are committed to making an impact that matters.

About Deloitte & Touche (M.E.):
Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is a leading professional services firm established in the Middle East region with uninterrupted presence since 1926.

Deloitte provides audit, tax, consulting, and financial advisory services through 26 offices in 15 countries with more than 3,300 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has also received numerous awards in the last few years which include best employer in the Middle East, best consulting firm, the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the best CSR integrated organization.



date:Posted: December 11, 2018
UAE. Countries that take ambitious action against climate change can close up to 90% of their gap to Paris targets using existing technologies; Mitigation actions can also boost economic growth, says new BCG report.
date:Posted: December 10, 2018
UAE. After fantastic returns in 2017 everywhere, 2018 is a sea of red; Volatility rules, despite objective good news on the political front; Patience recommended as markets undershoot fundamentals.
date:Posted: December 10, 2018
UAE. Retail sales across four Gulf countries are projected to increase by more than US$24 billion over the next five years, according to new research from Euromonitor International; UAE's US$55 billion retail industry forecast to grow 16% by 2023.
UAE. Countries that take ambitious action against climate change can close up to 90% of their gap to Paris targets using existing technologies; Mitigation actions can also boost economic growth, says new BCG report.