FSS Holds Relay Meetings Until June to Ensure IFRS17 Implementation

The Financial Supervisory Service (FSS) announced on the 9th that it will hold a series of meetings with insurance company settlement officers, accounting firms, actuarial firms, and analysts to support the establishment of the new insurance accounting system (IFRS17).

As the start of the series of meetings, the FSS held a meeting chaired by Deputy Director Cha Suhwan, who is in charge of insurance, inviting top analysts from credit rating agencies and securities firms. The meeting was an opportunity to listen to positive aspects and difficulties related to the use of financial information under the newly changed insurance accounting system, and to hear opinions on key issues and suggestions.

Deputy Director Cha said, "Please contribute to creating market conditions that allow insurance companies to focus on strengthening fundamentals rather than short-term performance improvement through accurate evaluation of the real value of each insurance company and comparison between companies, leading to genuine value-up." He added, "Since issues regarding the appropriateness of actuarial assumptions of insurance companies are also being raised, I hope you will fulfill the role of market overseer so that the domestic insurance industry can quickly find market balance on its own through accurate and objective comparison and evaluation."

Analysts attending the meeting evaluated that with the introduction of IFRS17, insurance companies' accounting information better reflects real value, and capital stability has been enhanced due to the fair value evaluation of assets and liabilities.

However, they suggested that due to unfamiliar terminology and theoretical concepts, the intuitiveness of information is reduced and it makes investor access difficult, thus improvements in disclosures are necessary.

Starting with this meeting, the FSS plans to hold additional series of meetings with insurance company settlement officers, accounting firms, and actuarial firms in May and June to identify issues related to IFRS17 and K-ICS (New Solvency II).

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