Deferral of Philippine Financial Reporting Standard (PFRS) 17, Insurance Contracts
The Securities and Exchange Commission (SEC) approved the deferral of the effectivity date of PFRS 17, Insurance Contracts, for Mutual Benefit Associations (MBAs) and Health Maintenance Organizations (HMOs). This is in relation to the request of the Insurance Commission (IC) to adopt the deferral based on IC-CL 2024-19 and 2024-20 issued earlier during the year as part of the SEC's financial reporting rules.
The adoption of PFRS 17, Insurance Contracts is initially set effective beginning on January 1, 2021, with the related amendments effective January 1, 2023. In December 2021, the date of initial application was deferred by two years to annual periods beginning on or after January 1, 2025. Following the deferral issued by IC in October 2024, as adopted by SEC, the revised effectivity for MBA and HMOs are as follows:
- For MBAs - effective beginning on or after January 1, 2030
- For HMOs - effective beginning on or after January 1, 2027
Please see attached circular for further guidance.
