Friday, March 23, 2018

Korean insurers ask to postpone new capital standards

Korea’s insurance sector has recommended to the Financial Supervisory Service (FSS) that it defer the implementation of K-Insurance Capital Standards, citing the heavy burden on the insurance industry of its financial reporting.

The capital standards require a new insurance liability market valuation system that is set to take effect in 2021.

Insurers claim this is adding an excessive load because the new financial reporting standard IFRS 17 will also take effect in the same year.

An FSS official recently defended the roll outs saying: “With the introduction of the IFRS 17, the available and demanded capital calculation method under the current risk based capital (RBC) system also needs to be completely revised as a way for the market-to-market liability valuation.

“In this respect, it is inevitable to introduce the IFRS17 and the K-ICS at the same time.”


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