The Insurance Commission (IC) has extended the deadline for the adoption of the Philippine Financial Reporting Standard 17 (PFRS 17) for (re)insurers to 1 January 2027. The industry had previously been tasked with adopting the local version of the IFRS 17 accounting standard by 1 January 2025.
In a circular letter, Insurance Commissioner Reynaldo A. Regalado said, “Insurers and reinsurers are not precluded from adopting PFRS 17 as early as this year.” However, he added that “the Commission recognises the need by insurers and reinsurers for additional time to prepare for the adoption of PFRS 17 in the presentation of their solvency reports.”
Regalado also said that the extended period will allow better coordination with the Securities and Exchange Commission (SEC), the Financial and Sustainability Reporting Standards Council (FSRSC), and the Professional Regulatory Board of Accountancy (PR-BOA).
Reynaldo A. Regalado
Commissioner of the Insurance CommissionThe IC’s circular mandates that insurers and reinsurers include reports on their progress in implementing PFRS 17 in their 2024 Annual Statements. These are due by 30 April 2025.
The reports must include formal declarations of the companies’ commitment to implementing the new standard. They must also include quarterly status reports detailing preparatory activities, implementation risks, challenges, issues, and the companies’ PFRS 17 accounting policies, the IC said.
The International Accounting Standards Board (IASB) introduced the global IFRS 17 standard for insurance contracts in May 2017, setting principles for the recognition, measurement, presentation, and disclosure of issued insurance contracts.
In 2018, the FSRSC and PR-BOA approved the Philippines’ local adoption of IFRS 17 as PFRS 17.
“The Commission views that the eventual institutionalization of PFRS 17 will ensure prudential stability and sustainable growth,” Regalado noted, adding that its eventual implementation will provide the public with “sustained or increased protection and confidence”.
The postponement of local adoptions follows delays in other Asian countries, including Taiwan and India, which have delayed implementation.
The standard aims to improve the comparability of insurers’ accounts, though a recent Fitch report noted that inconsistencies in reporting and challenges in peer comparison remain.
