Insurance Regulatory update - Financial reporting

FRS 103 Insurance Contracts updated
On 28 March, the FRC issued an update to FRS 103 Insurance Contracts which sets out the reporting requirements for entities in the UK and Republic of Ireland who issue insurance contracts. The updated edition of FRS 103 issued in March 2018 updates the edition of FRS 103 issued in February 2017 for the following:

  • triennial review 2017 amendments issued in December 2017;
  • the deletion of Appendix III Tables of concordance between FRS 103, FRS 27 and the ABI SORP; and
  • some minor typographical or presentational corrections.
In addition, the FRC issued updated Implementation Guidance to accompany the updated FRS 103 which updates the edition of the Implementation Guidance issued in February 2017 for some minor typographical or presentational corrections.

Opportunity for UK stakeholders to express views on financial statements of insurers
On 12 April, the FRC published a notification regarding an important opportunity for UK stakeholders to express views on the financial statements of insurers. IFRS 17 is designed to replace the interim standard IFRS 4 Insurance Contracts.

The European Financial Reporting Advisory Group (EFRAG) is seeking the views of users of financial statements as a key input into its endorsement advice to the European Commission. EFRAG wishes to gather views from both specialist users, who mainly follow insurance companies, as well as users who follow a range of companies.

An expression of interest to participate in this consultation is requested by Friday, 11 May 2018.