The AMF has published the new guidelines for insurers

These rules represent a very important accounting change affecting the assurance industry here and elsewhere in the world. The insurers will have to adapt their practices in terms of accounting, actuarial evaluation and disclosure.

L’IFRS 17 apporte des améliorations du côte de la transparency qui sera accrue et de la comparabilité des risques. It would also have an impact on the insurers’ systems that support these activities.

These lignes directrices vont contribute « au maintien de la confiance du public et des marchés envers le système financier québécois », estimates Louis Morisset, president-general manager of the AMF.

Dans son ensemble, l’industrie québécoise de l’assurance is well capitalized by virtue of current accounting rules and guidelines and remaining during the transition to IFRS 17.

A long process

Their transition to the new rule cannot be done without collaboration between the Financial Institutions Supervisory Office, insurers and other parties participating in several consultations, discussions and quantitative impact studies.

The IFRS 17 norm being new, the impact is not realized during the implementation in 2023. In the context, which is additionally marked by the increase in the interest rate and a high volatility on the stock market, the AMF recommends aux assureurs de faire une bonne gestion des risques in their prize de decisions ayant des impacts on their level of capital.

For more information on the new guidelines for personal insurance, click here.

Note that the AMF has also published new guidelines for indemnity insurance, for self-regulatory bodies and for reciprocal unions.

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