IC mandates PFRS 17 adoption by insurers by 2027

The Insurance Commission (IC) has mandated that all insurers and reinsurers in the Philippines must adopt the Philippine Financial Reporting Standard 17 (PFRS 17) by January 2027.

IC chief Reynaldo Regalado stated that while companies have until 2027 to comply, they are not prohibited from adopting PFRS 17 earlier if prepared.

The new standard aims to provide a more uniform and transparent approach for determining insurance contract liabilities using current values and risk adjustments.

Insurers and reinsurers will be required to submit reports detailing their progress in implementing PFRS 17, including quantitative impact assessments, until April 30.

Regalado emphasized that the adoption of PFRS 17 is crucial for ensuring prudential stability and sustainable growth within the insurance sector.