Philippine insurers to shift towards new accounting system by 2025

Insurers may start to adopt the PFRS 17 in 2023.

Philippine insurers will move towards a “more transparent” accounting system by 2025, according to local media reports, a shift that will necessitate the reassessment of operations, financial reports, and actuarial calculations.

In an online forum, the country’s Insurance Commission (IC) deputy commissioner Ferdinand George Florendo said that local insurers may start the shift to Philippine Financial Reporting Standard (PFRS 17) in January 2023 with an industry-wide adoption targeted by 2025.

He said that insurers have enough time to comply with the transition.

PFRS 17 uses a single accounting approach that will allow for more transparent information amongst managers, decision makers and the public, the reports said.

It will also be easier for foreign investors to evaluate insurers that are on-tap for investment or buyout, Florendo said.