Revised DFSA reporting requirements for Insurance Firms

On 7 November 2022, the DFSA issued a Consultation Paper (CP146) setting out proposed changes which will amend the Prudential reporting requirements for authorised Insurance Firms only (no impact on brokers or MGAs). The DFSA has invited comments on its proposals by 7 December 2022.

The International Accounting Standards Board (IASB) drafted significant changes to its International Financial Reporting Standards back in 2017. These IFRS 17 proposals represent a comprehensive accounting standard for insurance contracts covering recognition, measurement, presentation and disclosure. This requires significantly more information than previous accounting standards and it will become effective on 1 January 2023.

The DFSA requires authorised Insurance Firms to maintain and prepare financial statements in accordance with IFRS. Therefore those firms will have to amend their regulatory filings to be in line with IFRS 17 following the effective date.

There are other changes for reporting in the Consultation Paper covering:
• Takaful Insurers may no longer use AAOIFI standards as an alternative to IFRS.
• Clarification that electronic reporting has superseded the need for paper returns.
• Clarification around the notification of non-actuarial estimations.
• Removal of requirement for Global Returns submissions.

We at Clarity Solutions are available to help you understand the prospective changes and frame any responses you might like to make. Please reach out to us either by using our Contact Us page on our website, or by emailing us directly at [email protected].