Insurance Europe position:
Please find below what the secretariat understands to be the final Commission Regulation proposed by the EC on the IFRS 17 annual cohort carve out, on which the members of the ARC will vote on 16 July 2021.
We understand that the EC has made the following changes (improvements) as compared to the document’s previous version:
– deleted “life” from “life insurance contracts with direct participation features” in article 2 (2) (a).
– clarified in a recital that the disclosure requirement should not imply a quantitative assessment of the impact of the use of the optional exemption from the annual cohort requirement.
The secretariat’s opinion is that the text addresses the key concerns raised by the industry, and is a very good outcome. The proposed endorsement timeline and process would also ensure that the effective date of 1 January 2023 is respected. We therefore encourage all members to reach out to their ARC representative to ensure a positive vote on 16 July.
If the ARC does not vote positively on 16 July, the endorsement timeline would be disrupted and the 1 January 2023 effective date put at risk.