Implementation of International Financial Reporting Standard (IFRS) 17 Insurance Contracts, (formerly known as IFRS 4 Phase II) in Korea will challenge life insurers’ capitalization by requiring them to measure their policy liabilities at current value. However, beyond this adjustment pressure, the new standard will, over time, promote structural improvements and value creation in the industry.
Moody’s: IFRS 17 Will Reduce Reported Capitalization, But Drive Structural Improvements