The Malta Financial Services Authority published the findings of a thematic review of (re)insurers’ implementation of International Financial Reporting Standard 17 and issued a Dear CEO letter with recommendations on further strengthening processes to meet the standard’s requirements. The review noted effective market-wide implementation while signalling that firms should continue to improve data quality to support accurate and consistent reporting. IFRS 17, adopted in January 2023, standardises how insurance companies report profits, insurance liabilities and risks to improve comparability of financial statements. The MFSA identified common transition practices including on-the-job training, creating working groups and committees, and using external consultants, with close collaboration between finance and actuarial functions, consultants and audit firms highlighted as important to integrating new processes and systems. Challenges cited included difficulties with data consistency and quality, and the possibility that new business appetite may have been dampened due to the standard’s influence on underwriting decision-making. The Dear CEO letter, addressed to senior officials at affected (re)insurance undertakings, summarises the thematic review’s findings and sets out guidance on next steps for the market.
Malta Financial Services Authority 2025-02-12
Malta Financial Services Authority issues Dear CEO letter on insurers’ IFRS 17 implementation after thematic review
The Malta Financial Services Authority's review on (re)insurers' implementation of IFRS 17 noted effective adoption but urged data quality improvements for accurate reporting. It highlighted common practices like on-the-job training and consultant collaboration, identified data consistency challenges, and potential impacts on underwriting. A Dear CEO letter recommended strengthening processes to meet IFRS 17 requirements.