Slovenia Insurance Supervision Agency participates in BIS FSI, IAIS and IMF Basel meeting on IFRS 17 implementation and new insurance performance indicators

The Slovenia Insurance Supervision Agency published a report on its representative’s participation in an October meeting in Basel co-organised by the Bank for International Settlements’ Financial Stability Institute, the International Association of Insurance Supervisors and the International Monetary Fund, focused on practical supervisory and reporting issues arising from International Financial Reporting Standard 17 (IFRS 17). Discussions covered IFRS 17 implementation, new business performance indicators, audit considerations and practical and actuarial aspects of applying the standard. Participants noted progress in implementation while highlighting that a major challenge remains achieving a consistent understanding and application of IFRS 17. The standard was described as supporting convergence between accounting and supervisory practices and contributing to gradual harmonisation of the regulatory framework. On performance indicators, where the Agency’s representative spoke as a panellist, the discussion pointed to using different metrics for non-life and life insurance, with traditional indicators seen as more suitable for non-life and new indicators needed to monitor life insurance business. Auditors stressed the need for greater focus on judgement and significant estimates and on data quality, drawing on first-year experience and discussing how audit findings can be incorporated into supervisory work, while the final panel highlighted reporting and audit practices under IFRS 17 and the role of actuarial techniques and professional judgement in valuing insurance contracts.