Nonetheless, for other financial institutions this standard is already effective since 1 January 2018 and some insurers have started their implementation activities some time ago already. Thus, lessons can be learned from
the work done by banks and insurers up to now.
This article focuses on the IFRS 9 provisioning (i.e. impairment) experiences to date and on the current discussion around interest rate only (IO) mortgages from an IFRS 9 perspective. This topic is a hot topic within credit risk from both a provisioning as capital perspective and is of that much interest to society that the Dutch banking association and the Dutch
association of insurers have initiated an awareness campaign because of the potential risks for consumers. As the impairment model landscape
becomes more complex and choices within IFRS 9 and IFRS17 impact each other, creating awareness of the choices made in the provisioning on both sides of the balance sheet should be part of the actuary’s agenda.
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- IFRS 9 provisioning: lessons learned and challenges to come .pdf • 0,22 MB
