Insurance

Ria Grant Thornton experts can help insurance companies in all project areas covered by the Grant Thornton network for the sector: Risk, Strategy and Transactions, Transformation.

The insurance sector is in a phase of profound transformation brought about by both the regulatory changes in IFRS 17 and 9, and in the context of major market changes, also in light of the growth in inflation and the rise in interest rates.

The organisational and accounting effects of the implementation of IFRS 17 and 9 are calling for huge commitment by the functions involved in the use of financial statements indicators and the monitoring of new accounting reports.  The new standard, presenting new types of data and disclosures, is difficult to compare with the previous IFRS 4 and IAS 39 data. This creates difficulties in interpreting the data and deviations. Even in the context of sharing objectives and results with the use of new KPIs, such as the CSM or old KPIs modified by the components of the new accounting standard, such as the Combined Ratio, difficulties are coming to light in the analysis of the results, as well as in the sharing of objectives and performances.

The return of inflation has brought to light new problems in the management of some businesses in the non-life sector and, in particular, in the cost of claims of some particularly sensitive lines of business.    The life sector has been impacted by certain aspects related to the consequent change in short and medium-long term interest rates. Another aspect to be monitored concerns the redemptions of first-class life insurance products and the related liquidity risk, and consequently the decisions to be taken in the field of strategic and tactical asset allocation, also for the purpose of seizing the opportunities presented by the rise in the curves of interest rates.