Total IFRS 17 implementation costs facing global insurance industry now at $18-24bn

Written by Adam Cadle

16/06/2022

The total cost faced by the global insurance industry to implement IFRS 17 is now estimated to be US$18-24bn, an increase of 20% compared to the original estimates made in 2021, according to Willis Towers Watson’s (WTW) latest survey entitled IFRS 17: Will we make it?.

The survey, which polled 270 insurers from 45 countries, found that only 40% of the 26 large multinationals polled and 20% of the other 244 companies expect to deliver fully prepared programmes on time.

Furthermore, while 14 of the 26 participating large multinationals are planning a 2022 investor update on IFRS 17, most other firms are not. Similarly, while some firms are required by local statute to publish Q1 2023 IFRS 17 accounts and a few larger insurers intent to voluntarily, most companies are not planning Q1 2023 accounts.

Kamran Foroughi, global IFRS 17 advisory leader at WTW, said: “The next 12 months are critical for the industry to deliver IFRS 17 programmes on time. The survey results lay bare the true scale of the challenge that inevitably means pushing more work post the “go live” date in order to maximise delivery confidence for the programme.”

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