Reported about 1 year ago
Wei Qiaoyi/Taipei reports that by 2026, the life insurance industry will align with the IFRS17 and TW-ICS. Large life insurers are seeking to continue using the current 'overlay method' to maintain stock investments and financial stability. Chairman of the FSC, Peng Jinlong, pointed out that if aligning with IFRS17, the conditions for using the overlay method would not exist at that time. He emphasized the need for careful consideration before making significant adjustments. Peng remains optimistic about the alignment as it has been prepared for years and has the experience of other countries to reference. The industry's push for the overlay method dates back to when life insurance liabilities were governed by IFRS4 before adopting IFRS9 for assets in 2018. The article also discusses the potential impact on accounting practices if the overlay method is not allowed.
Source: YAHOO