Philippine insurers to adopt IFRS 17 standard by 2027

But insurers may opt to begin adjusting their financial reports prior to the date.

The Philippine Insurance Commission has mandated the adoption of the Philippine Financial Reporting Standard 17 (PFRS 17) for insurance contracts in the audited financial statements (AFS) of all insurers and professional reinsurers starting 1 January 2027. 

The new standard, aligned with the International Financial Reporting Standard (IFRS 17) introduced by the International Accounting Standards Board in 2017, requires a more uniform and transparent approach to determining insurance contract liabilities. 

Insurance Commissioner Reynaldo A. Regalado acknowledged that additional time is needed for insurers and reinsurers to prepare for PFRS 17 adoption, allowing for better coordination amongst regulatory bodies, including the Securities and Exchange Commission, the Financial and Sustainability Reporting Standards Council, and the Professional Regulatory Board of Accountancy. 

Despite the mandated adoption date, insurers and reinsurers are permitted to adopt the new standard earlier if they choose. 

As part of the transition, insurers and reinsurers are required to submit implementation status reports and affidavits of undertaking with their 2024 Annual Statements, due by 30 April 2025.