New accounting standards = more costs for insurers
According to actuarial services team leader and partner at PwC New Zealand Ben Coulter, the introduction of New Zealand International Financial Reporting Standards 17 (NZ IFRS17) will lead to additional time and money spent on accounting services but could also be an opportunity to review a company's accounting systems at the same time.
Coulter told viewers of the Financial Services Council's online conference Regerations Reimagined that the costs of implementing the new standard would hit smaller insurers harder than larger organisations but would bring New Zealand into line with the rest of the world in terms of insurance accounting practices.
That is everyone except the United States, that has decided not to implement IFRS17 and will instead use its own standards.
NZ IFRS17 is the latest IFRS standard for insurance contracts and replaces NZ IFRS4 on January 1, 2022, however, the changes won't affect insurers until later that year depending on the timing of accounting dates.
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