Insurance Accountants Face Challenges with IFRS 17 Implementation and Staffing Issues

Insurance accountants face challenges in implementing IFRS 17 and staffing shortages. They are also responsible for ensuring new technology platforms have proper controls in place, particularly for cyber and artificial intelligence. According to Joe Kowalczyk of Crowe LLP, technology cannot bridge all gaps at present.

Insurance accountants are facing significant challenges in implementing International Financial Reporting Standard 17 (IFRS 17) and addressing staffing shortages. Additionally, they are responsible for ensuring that new technology platforms, particularly those involving cybersecurity and artificial intelligence (AI), have proper controls in place. According to Joe Kowalczyk of Crowe LLP, while technology offers promising solutions, it cannot entirely bridge the gaps at present [1].

IFRS 17, which came into effect in January 2023, requires insurers to use a new, more comprehensive approach to measuring and reporting financial results. This standard has presented a steep learning curve for many insurance companies, necessitating significant investments in training and resources. The complexity of IFRS 17, combined with the need to integrate it with existing systems, has led to increased workloads for accounting teams.

Staffing shortages are another pressing issue. The insurance industry is facing a skills gap, with a growing demand for professionals with expertise in areas such as data analysis, cybersecurity, and AI. According to a report by the Insurance Information Institute, the industry is expected to create 1.5 million jobs by 2025, but there is a shortage of qualified candidates to fill these positions [2].

To address these challenges, many insurance companies are turning to AI to streamline operations and improve efficiency. AI can automate repetitive tasks, such as data entry and policy analysis, freeing up accountants to focus on more strategic and complex work. Additionally, AI can help insurers better manage risk by providing real-time data analysis and predictive modeling.

However, implementing AI in insurance accounting comes with its own set of challenges. Ensuring that AI systems have proper controls in place is crucial, particularly in the context of cybersecurity. AI systems can be vulnerable to cyberattacks, and insurers must take steps to protect their data and ensure the integrity of their AI models.

Despite these challenges, the potential benefits of AI in insurance accounting are significant. AI can help insurers comply with IFRS 17 more efficiently, reduce operational costs, and improve the accuracy of their financial reporting. As the insurance industry continues to evolve, it is likely that AI will play an increasingly important role in addressing the challenges faced by insurance accountants.

References:

[1] https://www.forbes.com/sites/josipamajic/2025/07/14/the-ai-gold-rush-hits-insurance-and-where-investors-are-doubling-down/

[2] Insurance Information Institute. (2025). "The Insurance Industry: A Look at the Future."