Adoption of IFRS 17 to test Takaful players in GCC - report
Takaful insurers operating across the Gulf Cooperation Council (GCC) are primed to continue a favorable growth path in 2023, underpinned by higher insurance prices and demand, a new report by S&P Global Ratings, has suggested.
However, the adoption of the International Financial Reporting Standard 17 (IFRS 17) does require Takaful insurers to update their internal processes and IT systems, which could translate into extra costs, time constraints, and operational challenges. This may potentially stress smaller, under-resourced players, the 'IFRS 17 Adoption Will Test GCC Islamic Insurers' report, has revealed.
Islamic insurers in Saudi Arabia, the largest Arab economy, and those operating out of other GCC countries adopted the aforementioned reporting standard from January 1, this year. Remaining insurers are likely to follow suit on the same date next year.
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