PwC Troubleshoots Financial and Risk Management Developments

Insurers in Canada are poised to be subjected to new International Financial Reporting Standards (IFRS). The changeover to the new standards, based on generally accepted accounting principles (GAAP), will go into effect in 2011.


Advisors at PricewaterhouseCoopers are urging insurers to ensure they take steps to be prepared for a gradual transition in order to achieve full compliance by the deadline date.


The firm recently released a 14-page report, Putting the IFRS in Motion, to help affected insurers make a seamless transition to the new standards that will change the means of reporting business results to analysts, investors and other stakeholders.


“The insurance industry in Canada is expected to be significantly impacted by the move to IFRS, but exactly how is still unclear,” the report explains in its introduction.


“For some insurers, how they account for their insurance contracts may not be significantly impacted by IFRS as it stands for 2011. However, for others that have products that don’t meet the definition of an insurance contract, it could mean a significant change in the amount of revenue recorded in the income statement.”


PwC is also facilitating compliance and learning sessions to keep insurance professionals up to speed on Enterprise Risk Management. In a separate report it notes that ERM “has reached a critical juncture as the demands of regulators, rating agencies and a more volatile market environment heighten the pressure on insurers to put risk considerations at the heart of their strategies and operations.”


In its most recent risk management study, PwC surveyed 55 insurers from Asia, Europe and North America to determine what makes an effective ERM framework.


The results will be discussed on Sept. 11 at a PwC Insurance Club EyeOpener session at the National Club in Toronto, 8 a.m. – 9 a.m.

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