Research from WTW has found that insurers face significant post-implementation challenges after reporting half-year results under IFRS 17 for the first time. The study polled 235 insurers from 37 countries/markets and nearly all said the change had impacted their ability to pay dividends.

WTW said that average implementation costs ran to hundreds of millions of pounds for the biggest insurers and to tens of millions of pounds for other carriers. It found that data, availability of skilled resources and systems/technology were the three greatest challenges for insurers implementing the new reporting standards.

Kamran Foroughi (pictured), global IFRS 17 advisory leader at WTW, said: “With insurers facing hefty costs to implement IFRS 17, future investments need to be strategic and targeted, delivering quick and tangible benefits. Substantial operational efficiencies also need to be found to maximise the benefits of IFRS 17 and move the reporting into business as usual.”

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