Reported 7 months ago
To avoid abrupt profit and loss changes after 2026, life insurance companies are lobbying the Financial Supervisory Commission to continue using the overlay method for investments like stocks and funds under the FVTPL category. While aligning with IFRS17 for liability accounting in 2026, the special relief measure of overlay method under IFRS9 will be removed, potentially causing sudden large gains or losses due to market fluctuations. Insurers are fighting to maintain the overlay method post-2026 to ensure financial stability, as without it, market fluctuations could lead to significant changes in profits.
Source: YAHOO