The Reserve Bank of Fiji has agreed that licensed insurers in Fiji will only be required to reflect International Financial Reporting Standard 17 (IFRS 17) Insurance Contracts in their prudential reporting from the financial period beginning 1 January 2026.
While acknowledging the benefits of IFRS 17, the Reserve Bank of Fiji (RBF) recognises the challenges it poses for some insurance companies hence the deferment.
“In the interim, all prudential returns required to be submitted by licensed insurers in Fiji will continue to be reported in the existing format. The RBF will continue to liaise with all the local insurers on the changes as and when these are implemented,” the RBF stated.
The IFRS 17 is an accounting standard that establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. It was to replace IFRS 4 for annual reporting periods beginning on or after 1 January 2023 and is expected to improve the usefulness, transparency and cross-jurisdictional comparability of insurers’ financial reports.
However, after having considered the challenges insurance companies including those conducting business in Fiji will have to contend with in implementing the new standard, the RBF has decided that it will put off mandatory compliance until 1 January 2026.
The RBF acknowledges the efforts of insurers who have already implemented IFRS 17 but aims to accommodate those still in the process, ensuring a transitionary period and industry consultation before full implementation.
In the meantime, prudential reporting will continue in the existing format.
“It is acknowledged that certain licensed insurers have implemented IFRS 17, and the RBF commends the tremendous work undertaken towards the implementation process. However, there is also a need to accommodate the majority of the licensed insurers that are yet to implement IFRS 17, and are now in the
process of deploying resources to enable adoption, including the undertaking of necessary training, the validation of needed changes, and ensuring the readiness of systems & processes for implementation.”