Financial Authorities Operate Practical Consultative Group to Support Insurance Companies' New Accounting System

[Asia Economy Reporter Changhwan Lee] Financial authorities announced that from the 30th until the end of March 2024, they will operate a practical consultative body to support insurance companies with the new accounting standards IFRS17 (Insurance Liabilities Fair Value Measurement) and K-ICS (Korean Insurance Capital Standard), which will be implemented starting next year, in order to resolve difficulties faced by insurance companies.

The authorities explained that since there are significant differences in the preparation status and response levels for the introduction of the new standards among insurance companies, and inquiries (or suggestions) regarding the new standards are expected to increase gradually, the practical consultative body was formed.

The consultative body aims to establish a rapid communication system regarding the progress of the new standards (including decision-making matters) involving financial authorities and related organizations, and to respond promptly to arising issues and inquiries by forming the body with top experts.

Experts from the Financial Services Commission, Financial Supervisory Service, Korea Accounting Standards Board, Korea Insurance Research Institute, Korea Insurance Development Institute, Samil Accounting Corporation, Life Insurance Association, and General Insurance Association will participate in the consultative body.

Additionally, to effectively handle inquiries from insurance companies related to the preparation for the new standards, a 'New Standards Inquiry Response System for Insurance Companies' will be established and operated.

This content was produced with the assistance of AI translation services.