With IFRS 17 now in effect, Canadian insurers have crossed a major regulatory milestone. But implementation was just the beginning. As the first reporting cycles conclude, insurers are shifting focus from compliance to optimization — refining processes, enhancing disclosures, and embedding IFRS 17 into business-as-usual operations.
Key Post-Implementation Challenges:
- Operationalizing the Standard Many insurers are still stabilizing their IFRS 17 processes. Manual workarounds used to meet initial deadlines are now being reassessed for automation, scalability, and control.
- Data Quality & Governance The need for granular, auditable data has exposed gaps in data lineage, ownership, and integration across actuarial, finance, and IT systems.
- Disclosure Complexity: First-year disclosures revealed inconsistencies in how insurers interpret and present key metrics such as CSM, risk adjustment, and coverage units. Peer benchmarking and regulator feedback are driving refinements.
- Audit Readiness & Control Frameworks: External audits have highlighted the need for stronger documentation, model validation, and internal controls — especially in judgment areas such as discount rates and risk adjustments.
- Business Impact & Performance Management: Insurers are now analyzing how IFRS 17 affects KPIs, product pricing, and capital management. Boards and investors are seeking clearer narratives to interpret the new financials.
Strategic Priorities Going Forward:
- Streamline & Automate: Replace temporary fixes with scalable, automated solutions to reduce operational risk and cost.
- Enhance Governance Formalize policies, controls, and documentation to support audit and regulatory expectations.
- Strengthen Cross-Functional Collaboration Deepen integration between actuarial, finance, and IT teams to support ongoing reporting cycles.
- Refine Disclosures Use early reporting experience to improve clarity, comparability, and investor communication.
- Leverage Insights Use IFRS 17 data to inform pricing, product design, and strategic decision-making.