The Australian Prudential Regulation Authority (APRA) has written to insurers to assess how they will be affected by new accounting rules making it easier for investors to compare performance across international markets.

AASB 17 Insurance Contracts is due to take effect from January 1 2021, in line with new global rules issued this year by the International Accounting Standards Board.

APRA says the standard is complex and potentially affects insurers in different sectors in different ways, and it is seeking more information to better understand the impacts.

As part of the consultation it will also seek more information on AASB 16, which relates to leases.

“APRA does not intend to alter its prudential or reporting framework for either AASB 17 or AASB 16 until their impacts are better understood, and expects insurers to maintain their APRA reporting obligations,” it says.

Companies planning early adoption should contact the regulator to discuss their approach before going ahead, it says.

Work on a new international standard began a decade ago, prompted by diverse accounting rules that made it difficult for investors and analysts to understand and compare insurers’ results.

It is expected 450 listed insurers worldwide will be affected by the change, with some observers warning earlier this year that implementation will not be easy.