Asked what the UAE's IFRS 17 impact assessments are likely to reveal, Oscar Kitasoboka, Chief Actuary at the UAE Insurance Authority, said: "We would expect areas around how challenging it's going to be to come up with a transitional balance sheet for life insurance entities, but also areas like the risk adjustment and how that relates to the level of reserves in the market."
Speaking on the sidelines of InsuranceERM's IFRS 17 conference, on 13 February in London, he said: "There is likely to be other areas of challenges, for example from a product design point of view; the potential volatility of the new IFRS balance sheet may require companies to think about a better alignment from an asset-liability management perspective".
"This may motivate companies to think through the quality of the assumptions that they make within their calculations to try manage the P&L and balance sheet impacts", he added.
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Companies:UAE Insurance Authority
People:Oscar Kitasoboka