The Philippine Insurance Commission (IC) has issued a circular, mandating insurance and reinsurance companies to adopt Philippine Financial Reporting Standard 17 (PFRS17) on insurance contracts, which is aligned with IFRS17.
PFRS17 is to be adopted with effect from 1 January 2025, said IC.
Insurance companies have already been given the option to adopt PFRS with effect from 1 January 2023.
IC's circular specifies reporting obligations for insurance and reinsurance companies, including the submission of details on premiums due and uncollected, amounts recoverable from reinsurers and funds held by or for reinsurers. Life insurance companies must also report on policy loans and segregated fund assets and liabilities.
IC added that it will conduct a quantitative impact assessment (QIA) using the current and PFRS17 financial reports. The QIA aims to assess the potential impact of PFRS17 implementation on the financial condition and position of insurance companies.
Source: asiainsurancereview.com