Egypt: Insurers face several challenges in implementing IFRS17
Source: Middle East Insurance Review | Jun 2023
Insurance companies in Egypt face five major challenges in applying the international financial reporting standard IFRS17 insurance contracts, according to Lux actuarial consultant Ahmed Nagy.
In a speech at the Arab Actuarial Conference held last week, Mr Nagy said that the most prominent of these challenges is the lack of accurate and sufficient data on the results of the companies’ operations as well as insurance products, reported Al Mal News.
He also said that many insurers lack an IT system to help them to implement the financial reporting standard. Insurers are working on developing the technological structure to facilitate IFRS17 implementation.
The market also has to manage exchange rate fluctuations, high interest rates and inflation.
He said the fourth challenge facing the market in applying IFRS17 is the regulatory framework. There is a need to enact legislative amendments to provisions for implementing IFRS17.
He added that the fifth challenge is how to deal with insurance pools and the mechanism for implementing IFRS17 on the shares of companies in these pools.
“It is expected that the insurance pools will give insurance companies data in accordance in line with IFRS17 or companies will share their data,” he said. M