58 The Impact of IFRS 9 and IFRS 17 on the Regulation and Management of the Taiwan Life Insurance Industry: A Preliminary Anlysis classes of assets and the accounting classifications, the life insurance companies will not be able to meet the long-term goal of maintaining a low probability of bankruptcy. 4. Implications To sum up the above findings, we believe that the life insurance companies should take a cautious approach while setting the interest rate model for measuring the fair value of liabilities.Because as long as the resulting interest rate curve has some changes, fair value of liabilities may change greatly. To abosorb the shock, we offer the following two suggestions. First, change the way the yield curve is constructed. Second, change the nature of life insurance products. That is, requiring life insurance companies reduces longterm interest rate guarantees. 5. Contributions To the best of our knowledge, this is the first study to analyze the possible impacts of IFRS 9 and IFRS 17 on life insurance industry in Taiwan. Through reviewing regulatory actions and interviewing domestic insurers, we offer practicable suggestions which are in conformity with the two new standards. Furthermore, our quantitative analysis not only fill the gap of relevant literature, but also provide domestic life insurers and the FSC with feasible soulutions to adapt smoothly to IFRS 17 in the future.
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