Press Release No. : 01/2024
Date : 26 January 2024
Press Release No 01 – Reserve Bank of Fiji Issues Clarification on the Adoption of IFRS 17 by Licensed Insurers In Fiji
The Reserve Bank of Fiji (RBF) wishes to advise of its arrangement for prudential reporting by insurance companies licensed to conduct business in Fiji, following the implementation of the International Financial Reporting Standard 17 (IFRS 17) Insurance Contracts.
IFRS 17 is an accounting standard that establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. The standard replaces IFRS 4 and applies to annual reporting periods beginning on or after 01 January 2023.
The RBF understands that IFRS 17 is expected to improve the usefulness, transparency and cross-jurisdictional comparability of insurers’ financial reports, however, as experienced the world over, the standard presents a significant change in the accounting of insurance contracts, the implementation of which poses considerable challenges to insurance companies, including those conducting business in Fiji.
In consideration of the above, the RBF has agreed that licensed insurers in Fiji will only be required to reflect IFRS 17 in their prudential reporting from the financial period beginning 01 January 2026.
It is acknowledged that certain licensed insurers have implemented IFRS 17, and the RBF commends the tremendous work undertaken towards the implementation process. However, there is also a need to accommodate the majority of the licensed insurers that are yet to implement IFRS 17, and are now in the process of deploying resources to enable adoption, including the undertaking of necessary training, the validation of needed changes, and ensuring the readiness of systems & processes for implementation.
As the regulator of Fiji’s insurance industry, the RBF recognises the need to incorporate the general purpose financial reporting requirements as supported by IFRS 17 into its prudential reporting framework, and preparatory work has been initiated accordingly.
The RBF expects to make the necessary changes to its prudential reporting requirements, conduct industry consultation on the same and allow for a transitionary period before 01 January 2026. In the interim, all prudential returns required to be submitted by licensed insurers in Fiji will continue to be reported in the existing format. The RBF will continue to liaise with all the local insurers on the changes as and when these are implemented.
RESERVE BANK OF FIJI
For further details, please contact:-
Communications Office
Telephone: (679) 3223 381 Email: info@rbf.gov.fj
Mr Mervin Singh – Manager Corporate Communications
Telephone: (679) 3223 229 Email: mervin@rbf.gov.fj