IFRS 17 Insurance Contracts
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The actuary and IFRS 17
IFRS 17 Insurance Contracts
IFRS 17, which is now effective for reporting periods beginning on or after Jan. 1, 2023, represents an opportunity for collaboration between the actuarial and accounting functions to create accounting standards for the next generation. The current transformation of the insurance industry towards using increasingly complex models, analytics, IT resources and data sources increases the opportunity for insurers to benefit from IFRS implementation.
What is IFRS 17?
The International Financial Reporting Standard (IFRS) 17 is the first international IFRS Standard for insurance contracts. It provides consistent principles for all aspects of accounting for insurance contracts and removes any existing inconsistencies. It also standardizes insurance accounting at a global level to improve comparability, increase transparency and provide the information required to assess the impact of insurance contracts on the insurer’s financial position, financial performance, cash flows and risk exposure. This standard impacts the profit, equity, insurance liabilities and financial reports of insurers and their information technology (IT) models and structures.
The standard applies to companies who have:
- Insurance contracts, including re-insurance contracts issued
- Re-insurance contracts maintained by the organization
- Investment contracts with a voluntary participation feature, provided that the insurer also issues insurance contracts
