CompendiumofSurveyconductedbyEconomistImpactonbehalfofDeloitteDecember2022ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloittegforIFRScompliance?PartI:Timetocompliance?PartII:ITsystemsreadiness?PartIV:Impactingfinancialstatements?PartV:Communicatingchange?PartVI:StrengtheningyourbusinesscsForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte3ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloittesonemoretimetosurveytheviewsoftheglobalinsuranceindustryonIFRSOurcommitmenttobringthehighestqualityindependentresearchonthisimportanttopicspansadecadeWereleasedourfirstsurveyin2012,titled"WinningthewaitingglobalconvergenceonaglobalaccountingstandardadoptedinallmarketsincludingtheUnitedStateswasatangibleprospect.ccountingTheglobalconvergencedidnotmaterializewhentheUSregulatorsintookthegforinsuranceintheirownhandsTheandsurveysreportedanincreasinglevelofengagementacrossallyalsoconfirmedtheappreciationacrosstheindustryoftheenormityoftheimplementationeffortsThedowntowasneverfinishedandinthegoalpostmovedtothecurrenttargetofJanuarympendiumyoucanfindtheresponsescollectedfromparticipantsgloballybetweenMayandJuneThecompendiumecollectedfromthislargesampleofseniorinsurancepractitionersinvolvedinsteeringtheirlycompliantwithIFRSinFrancescoNagariGlobalIFRSInsuranceLeaderDeloitteChinaLinkstoprevioussurveys:GlobalSurvey2018:"2021countdownunderway"GlobalSurvey2013:"Gainingmomentum"GlobalSurvey2012:"Winningthewaitinggame?"Settingnewstandards:PreparingforIFRS17complianceForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte5ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte68.1% yconfident tconfident 20%40%60%80%100%8.1% yconfident tconfident 20%40%60%80%100%January2023?Selectone.#%8.1%nfident90ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte7Ingettingyourcompanyreadyforthe"go-live"dateofIFRS17,pleaseindicatethedifficultyyourorganizationhasexperienced(orcontinuestoexperience)inworkingtosuccessfullycompleteeachstep?Selectoneanswerineachrow.ficultyModeratedifficultyMinimaldifficultyiculty033.1%%culationsandreporting240.6%.6%systemsorimplementnewywiththenewIFRSrequirements0%%newsystemsand041.7%attransitiondateJanuary2023)042.2%2%8.1%ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte8Ingettingyourcompanyreadyforthe"go-live"dateofIFRS17,pleaseindicatethedifficultyyourorganizationhasexperienced(orcontinuestoexperience)inworkingtosuccessfullycompleteeachstep?Selectoneanswerineachrow.(cont’d…)ficultyModeratedifficultyMinimaldifficultyicultyformationduring143.9%.3%rialregulatorynceandriskfunctions1%%.3%040.8%2%onfor136.1%%.3%140.8%.3%ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte9Ingettingyourcompanyreadyforthe"go-live"dateofIFRS17,pleaseindicatethedifficultyyourorganizationhasexperienced(orcontinuestoexperience)inworkingtosuccessfullycompleteeachstep?Selectoneanswerineachrow.(cont’d…)EstablishaprogrammanagementteamRetrievedatanecessaryforIFRS17EstablishaprogrammanagementteamRetrievedatanecessaryforIFRS17calculationsandreportingUpgradeexistingcapabilitiesofITsystemsorimplementnewsystemstocomplywiththenewIFRS17…CompleteUserAcceptanceTestingofthenewsystemsandprocessesProducetheopeningbalancesheetattransitiondate(1January2023)Produce"parallelrun"IFRS17financialinformationduring2022Reviewtheoperatingmodelofactuarial,regulatoryreporting,financeandriskfunctionsEducateandtrainstaffwhohavenotbeeninvolvedintheimplementationofIFRS17PrepareinvestorrelationsandfinancialcommunicationforshareholdersandmarketsEngagementwithyourorganization’sexternalauditorstoauditIFRS173%3%3%3%6%3%3%3%4%3%33%41%39%42%42%34%37%41%36%36%14%0%10%1%11%0%10%0%8%0%9%0%10%0%12%0%0%11%0%440%36%37%35%34%44%40%34%38%41%0%10%20%30%40%50%60%70%80%90%100%GreatdifficultyModeratedifficultyMinimaldifficultyNodifficultyDon’tknowForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte10Whatisyourorganization’scurrentprogresstowardthecompletionofeachworkstreambeforethe'go-live'date?Selectoneanswerineachrow.(cont’d…)anGreaterthan50%,butnotfullycomplete645.3%culationsandreporting244.2%.6%mplementnewsystemsomplywiththenewIFRSrequirements2%.6%ystemsandprocesses26.1%.6%esheetattransitiondateJanuary248.6%%.6%ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte11Whatisyourorganization’scurrentprogresstowardthecompletionofeachworkstreambeforethe'go-live'date?Selectoneanswerineachrow.anGreaterthan50%,butnotfullycompleteormationduring2.6%alregulatoryreportingfinanceandriskfunctions26.1%.6%146.9%.3%onfor3%%147.8%33.1%.3%?2022.Forinformation,contactDeloitteToucheTohmatsuLimited.PreparingforIFRS17Compliancesurvey|EconomistImpactand12DeloitteWhatisyourorganization’scurrentprogresstowardthecompletionofeachworkstreambeforethe'go-live'date?Selectoneanswerineachrow.EstablishaprogrammanagementteamRetrievedatanecessaryforIFRS17EstablishaprogrammanagementteamRetrievedatanecessaryforIFRS17calculationsandreportingUpgradeexistingcapabilitiesofITsystemsorimplementnewsystemstocomplywiththenewIFRS17…CompleteUserAcceptanceTestingofthenewsystemsandprocessesProducetheopeningbalancesheetattransitiondate(1January2023)Produce"parallelrun"IFRS17financialinformationduring2022Reviewtheoperatingmodelofactuarial,regulatoryreporting,financeandriskfunctionsEducateandtrainstaffwhohavenotbeeninvolvedintheimplementationofIFRS17PrepareinvestorrelationsandfinancialcommunicationforshareholdersandmarketsEngagementwithyourorganization’sexternalauditorstoauditIFRS177%21%21%22%20%20%23%22%22%9%36%34%26%26%31%30%26%31%32%33%%1%1%1%1%1%445%44%52%51%49%50%51%47%45%48%0%10%20%30%40%50%60%70%80%90%100%Lessthan50%Greaterthan50%,butnotfullycomplete100%completeDon’tknow?2022.Forinformation,contactDeloitteToucheTohmatsuLimited.PreparingforIFRS17Compliancesurvey|EconomistImpactand13Deloitte?2022.Forinformation,contactDeloitteToucheTohmatsuLimited.PreparingforIFRS17Compliancesurvey|EconomistImpactand14Deloitte27.2%5.8%.3%MycurrenttechnologysystemsrequiredsignificantupgradesMycurrenttechnologysystemsrequiredmoderate27.2%5.8%.3%MycurrenttechnologysystemsrequiredsignificantupgradesMycurrenttechnologysystemsrequiredmoderateupgradesgysystemsdiddes0%20%40%60%80%100%administrativeand/oractuarialsystems)havechangedtomeettherequirementsofIFRS17?Selectone.#%esdes1.3%?2022.Forinformation,contactDeloitteToucheTohmatsuLimited.PreparingforIFRS17Compliancesurvey|EconomistImpactand15DeloitteingstatementsSelectoneanswerineachThisquestionwasansweredbythoseparticipantswhosaidtheirtechnologysystemsrequiredsignificantormoderateupgrades(asub-totalof338participantsoutof360-seepage15)eNeitheragreenordisagreeSomewhatdisagreeStronglydisagreelvendorsto730.1%40.5%%%nddevelopinhousesolutionsforIFRS1048.2%%.3%tysoftwaretweneededtomanagethedataandFRS003.1%eweviouslyavailable002%?2022.Forinformation,contactDeloitteToucheTohmatsuLimited.PreparingforIFRS17Compliancesurvey|EconomistImpactand16DeloitteingstatementsSelectoneanswerineachThisquestionwasansweredbythoseparticipantswhosaidtheirtechnologysystemsrequiredsignificantormoderateupgrades(asub-totalof338participantsoutof360-seepage15)WeneededtopartnerwithexternalvendorstoadequatelyupgradeoursystemsWewereabletoleverageexistingsystemsandcapabilitiestodevelopin-housesolutionsforIFRS17Wewereabletoprocurethehigh-qualitysoftwaresolutionsthatweneededtomanagethedataandcalculationsrequiredbyIFRS17 12%0% 0% 15%0%41%48%54%37%38%30%32%23%24%21%0%9%%0%10%20%30%40%50%60%70%80%90%100%OureffortstoupgradeourITsystemsbroughtnewcapabilities,beyondthosepreviouslyavailableStronglyagreeSomewhatagreeNeitheragreenordisagreeSomewhatdisagreeStronglydisagreeDon’tknow?2022.Forinformation,contactDeloitteToucheTohmatsuLimited.PreparingforIFRS17Compliancesurvey|EconomistImpactand17Deloitte36.4%33.1%30.2%27.2%27.2%24.0%19.5%18.3%13.3%.3% ngdatainputsatthe nology ment oncapabilities 36.4%33.1%30.2%27.2%27.2%24.0%19.5%18.3%13.3%.3% ngdatainputsatthe nology ment oncapabilities ty asespecify 20%40%60%80%100%apply.Thisquestionwasansweredbythoseparticipantswhosaidtheirtechnologysystemsrequiredsignificantormoderateupgrades(asub-totalof338participantsoutof360-seepage15)#%elofgranularityssdatasourcesiefinanceriskmanagementrialfunctionsysolutionsieedprocessingtimeofautomationsolutions33.1%2%apabilitiesycurityerPleasespecify01.3%ultiplechoicesForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte18Qualityofpackagedsoftwaresolutions(i.e.,out-of-the-boxfunctionalitiesweresubstantially…BudgetingenoughresourcesQualityofpackagedsoftwaresolutions(i.e.,out-of-the-boxfunctionalitiesweresubstantially…Budgetingenoughresources(bothinternalandexternal)forimplementingandtestingIFRS-…Integratingoperations(i.e.,finance,riskmanagement,actuarial)tooptimizetheuseofthenew…AbilitytoprovidesufficientstafftimetodelivertheimplementationEnsuringadequatecyber-security(i.e.,ensuringadequatedataprotectionsareinplace)42.6%0%20%40%60%80%100%technologysolutionstosupportIFRS17compliance?Selectuptothree.Thisquestionwasansweredbythoseparticipantswhosaidtheirtechnologysystemsrequiredsignificantormoderateupgrades(asub-totalof338participantsoutof360-seepage15)#%packagedsoftwaresolutionsieoutoftheboxallyinadequateforyourorIFRS42.6%dexternalFRSrelatedtechnologysolutionsriskmanagementarialtooptimizetheuseofthenewtechnologyionscientstafftimetodeliverthetyieensuringadequatenplaceForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte19HavingtimetoimplementnewtechnologysolutionsFindingthevendor(s)withthetechnologysolutionsweneedAllowingHavingtimetoimplementnewtechnologysolutionsFindingthevendor(s)withthetechnologysolutionsweneedAllowingenoughtimefortestingtetechnologyllstalenttotandimproveasespecifys0%20%40%60%80%100%technologysolutionstosupportIFRS17compliance?Selectuptothree.(cont’d…)Thisquestionwasansweredbythoseparticipantswhosaidtheirtechnologysystemsrequiredsignificantormoderateupgrades(asub-totalof338participantsoutof360-seepage15)#%ntnewtechnologysolutionsiththetechnologysolutionseedingenoughtimefortestingysolutionslenttoimplementtestandchnologysolutionsPleasespecifywhichentwaslacking0erPleasespecify0ges0ultiplechoicesForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte20PartIII:AllocatingfinancialandhumanresourcesForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte21 essthanm essthanm essthanm essthanm olessthanm 20%40%60%80%100%software/hardwareandexternalfeesforprofessionalservices)tomeetthenewIFRS17regulations?Selectone.#%0thanmtolessthanm5thanmtolessthanmthanmtolessthanmethanmtolessthanm80ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte22Pleaseestimatehowyourbudgetis/wasspent?EachrowrepresentsacategoryofexpenditurefortheimplementationofIFRS17andeachcolumntherangewithinwhichthepercentageofthetotalIFRS17implementationexpenditurewasforthatcategory.-50%75%6%-100%designingimplementingtestingtechnologysolutionsegforactuarialvaluationsonanddatastorage0100%3.1%.3%s2000.6%sconsultingfirmsegfornicalIFRStechnicalactuarialntation2000.6%6%chnologysolutions2001.6%.3%.3%nses08002%45.6%ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte2377%23%0%70%29%0%76%77%23%0%70%29%0%76%24%0%90%9%0%0%Otherinternalexpenses0%52%20%46%20%30%40%50%60%70%80%90%100%76%-100%NotansweredInternalresourcesfordesigning/implementing/testingtechnologysolutions(e.g.,foractuarialvaluations,financialsub-ledgerapplicationanddatastoragesystems)BuyingsoftwareandhardwaresolutionsEngagingexternalbusinessconsultingfirms(e.g.,forprojectmanagement,technicalIFRS,technicalactuarialandsystemsimplementation)Engagingcontractorsfordevelopmentandimplementationoftechnologysolutions0%10%0%1%-25%26%-50%51%-75%Percentage0%1%-25%26%-50%51%-75%implementationexpenditureForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte24Howmanypeoplewere(are)involvedatthepeakofyourorganization'seffortstoimplementIFRS17?Selectoneanswerineachrow.to0o+oweesFinance0900%40.3%sActuarial1820.3%48.9%.6%130.3%36.1%%ployeesOtherPleasespecify00000000ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte25Howmanypeoplewere(are)involvedatthepeakofyourorganization'seffortstoimplementIFRS17?Selectoneanswerineachrow.(cont’d…)to0o+ow220.6%.1%42.2%.6%260.6%45.8%1.1%360%4.7%%ecify00000000ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte26Howmanypeoplewere(are)involvedatthepeakofyourorganization'seffortstoimplementIFRS17?Selectoneanswerineachrow.(cont’d…)to0o+owsFinance320%4.2%%40.8%.6%sActuarial240.6%3.1%41.1%T44043.1%ultantsOtherPleasespecify00000000ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte27Howmanypeoplewere(are)involvedatthepeakofyourorganization'seffortstoimplementIFRS17?Selectoneanswerineachrow.(cont’d…)40%50%0%7%24%49%24%29%36%28%0%6%6%42%34%1%6%21%46%26%1%40%50%0%7%24%49%24%29%36%28%0%6%6%42%34%1%6%21%46%26%1%5%25%40%28%1%5%8%41%36%1%4%27%41%27%22%43%27%5%Full-timeemployees:FinanceFull-timeemployees:ActuarialFull-timeemployees:ITFull-timeemployees:Other[Pleasespecify]Part-time/contractworkers:FinancePart-time/contractworkers:ActuarialPart-time/contractworkers:ITPart-time/contractworkers:Other[Pleasespecify]Businessconsultants:FinanceBusinessconsultants:ActuarialBusinessconsultants:ITBusinessconsultants:Other[Pleasespecify] 0% 0% 0%0%10%20%30%40%50%60%70%80%90%100%None1to1011to2526to5051to7576+Idon’tknowForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte28sForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte29PleaseindicatetheexpectedimpactofcompliancewithIFRS17onyourorganization’sfinancialstatementscomparedwithcurrentreportingrequirements,followingthetransitiondate(i.e.,1January2022forcalendaryearreportingentitiesadoptingIFRS17,withaneffectivedateof1January2023).Selectoneanswerineachrow.owity2%0.7%2%abilities3%%earunderIFRSie1.3%33.1%%3.1%econtracts%0ForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte30PleaseindicatetheexpectedimpactofcompliancewithIFRS17onyourorganization’sfinancialstatementscomparedwithcurrentreportingrequirements,followingthetransitiondate(i.e.,1January2022forcalendaryearreportingentitiesadoptingIFRS17,withaneffectivedateof1January2023).Selectoneanswerineachrow.TransitiondatenetTransitiondatenetassets/equityTransitiondatevalueofmyIFRSliabilitiesProfitsinthefirstyearunderIFRS17(i.e.,2023)ProfitvolatilityEmergenceofprofitsovertimefromin-forceinsurancecontracts99%0%38%33%52%82%50%35%32%31%31%29%25%24%6%0%9%3%0%10%20%30%40%50%60%70%80%90%100%Higher/QuickerLower/SlowerBroadlythesameIdon’tknowForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpactandDeloitte31AligningcomplianceofIFRS17standardswithotherlocalregulatoryframeworks(SolvencyII…Unbundlingofembeddedderivativesandotherdistinctnon-insuranceAligningcomplianceofIFRS17standardswithotherlocalregulatoryframeworks(SolvencyII…Unbundlingofembeddedderivativesandotherdistinctnon-insurancecomponentsTransition—estimatingtheIFRS17amountstobereportedintheopeningbalancesheetCalculationofcontractualservicemargins(CSM)unlockingandcoverageunitsAccountingforthevariablefeeapproach(includingdeterminingeligibilityforitsuse)0%20%40%60%80%100%#%mplianceofIFRSstandardswithotherlocalntheEUnewriskrdsinAsiancountriesetcsandotherdistinctbalancesheetontractualservicemarginsCSMunlockingiablefeeapproachincludinglityforitsuse?2022.Forinformation,contactDeloitteToucheTohmatsuLimited.PreparingforIFRS17Compliancesurvey|EconomistImpactand32Deloitte Accountingfortheeffectof ntpresentation Applying Accountingfortheeffectof ntpresentation Applyingtheothercomprehensive alculationsand ThattheUnitedStateswillnot… easedearnings pectedcashflows ccountingforreinsurance ntractmeasurement asespecify 60%80%100%#%hangesinforeigncurrencytheothercomprehensiveincomeOCIoptiontonnsanddisclosuresdStateswillnotadoptaconsistentstandardatilityhflowscontractsheldrementerPleasespecify00ultiplechoicesForinformationcontactDeloitteToucheTohmatsuLimitedPreparingforIFRS17Compliancesurvey|EconomistImpa