 Implications of IFRS for the European Insurance Industry—Insights From Capital Market TheoryThomas Post, Helmut Gründl, Lisa Schmidl and Mark S. Dorfman Risk Management and Insurance Review, 2007, vol. 10, issue 2, 247-265 Abstract: The European insurance industry is currently undergoing a substantial change in financial reporting requirements. Beginning in 2005, compliance with the International Financial Reporting Standards (IFRS) has been required in the European Union. Substantial sections of the IFRS—leading to a market‐oriented valuation of insurance contracts—are still under construction and will be introduced in the next few years. To date, assessment of the potential impact of the new IFRS accounting and reporting system is largely found in trade literature, and in insurance industry business leader and expert commentator statements. The tenor of opinion is that the IFRS will create a serious challenge for the European insurance industry. To evaluate the impact of IFRS more scientifically, this article applies—where indicated—capital market theory and the concept of information efficiency. The article suggests that concerns about the effects of IFRS are exaggerated, and reveals that the main area of IFRS impact on the European insurance industry is likely to be on insurance product design. Date: 2007 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:rmgtin:v:10:y:2007:i:2:p:247-265 Access Statistics for this article Risk Management and Insurance Review is currently edited by Mary A. Weiss More articles in Risk Management and Insurance Review from American Risk and Insurance Association |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.