The BIBF signs an MoU with Lux Actuaries and Consultants

16 February 2022

With the implementation of the new International Financial Reporting Standards (IFRS-17) set to go live in 2023, and to ensure the readiness of the Insurance companies on how to apply these standards, the BIBF has signed a Memorandum of Understanding (MoU) with Lux Actuaries and Consultants to provide training solutions for Insurance companies across the region.

The BIBF and Lux will be working together to provide comprehensive training solutions for all effected stakeholders throughout the chain of command in Insurance companies.

Two high-level training programmes were introduced focusing on the IFRS-17 specific training needs of board members and executive management of Insurance companies:

• IFRS-17: Financial & Operational Impacts from a Regional Perspective (For Board Members)
• IFRS-17: Operational Impact, Implementation Plans & Dry Runs (For Executive & Senior Management)

These programmes are designed in line with the BIBF’s strategy of supporting the Insurance sector, ensuring the sound implementation of the IFRS-17 standards that are expected to have critical impact on the operations and the financials of insurance companies.

The International Financial Reporting Standard (IFRS) 17 Insurance Contracts (“IFRS 17”) is the accounting standard for insurance contracts prepared by the International Accounting Standards Board (IASB) and replaces IFRS 4 Insurance Contracts (“IFRS 4”). IFRS 17 is aimed at enabling market participants to assess the financial position, performance and risk exposures of insurers and compare them across countries and sectors. Amendments to IFRS 17 were issued in June 2020, including a deferral of its effective date by two years. Consequently, IFRS 17 is required to be applied in financial statements for annual reporting periods starting on or after 1 January 2023.

On this occasion, the BIBF Director, Dr. Ahmed Al-Shaikh said, “We look forward to working with Lux as they are one of the first actuarial firms in the GCC to be awarded the QAS accreditation and is among a limited number of professional actuarial firms accredited outside the UK.”

Executive Director, Consulting Actuary at Lux Actuaries & Consultants Mr. Shivash Bhagaloo stated, “We are at a critical time of IFRS-17 alignment and we are confident that, through our close partnership with the BIBF, we can support the goal of alignment with our actuarial expertise across the regions we serve. Our local base has, over the years, served as our strength by bringing dynamic, relevant and international advisory standards to the local market. We are proud to support the BIBF in this initiative!”

On her part, the BIBF Head of Insurance Centre, Ms. Manal Mashkoor said, “We continue to be committed to provide the Insurance industry with the required training and advisory support while it implements such critical initiatives. We are proud of our partnership with Lux, that has been at the forefront of IFRS-17 implementation for Insurance companies across the Middle East. Collaborating with key stakeholders including regulators, solution providers and professional actuarial bodies has put Lux in a central advisory position on regional market developments on IFRS-17. We believe that the combined strength of BIBF and Lux will lead to the delivery of world-class and customised IFRS-17 training solutions.”

The first set of courses introduced are specifically designed to suit the needs of board members and the executive management team of Insurance companies, and to ensure that decision-makers are thoroughly equipped to lead their organisations through these changes and put the right resources in place. Further courses will be introduced to cover detailed operational and financial aspects of IFRS-17.