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Easing the transition to new IFRS 17 for insurance contracts

It's been called “the first truly international IFRS standard for insurance contracts” and will come into effect from the start of 2021, replacing IFRS 4 Insurance Contracts. IFRS 17 Insurance Contracts provides one accounting model for all insurance contracts in all IFRS jurisdictions. It will affect 450 listed insurers using IFRS Standards, which insure $13 trillion total assets. The new standard will come into effect from January 2021, so companies now have three years to implement the new requirements. The main changes included in the new IFRS 17 are: more useful and transparent information and better information about profitability. Its aim is to provides consistent principles for all aspects of accounting for insurance contracts, to removes existing inconsistencies and enable investors, analysts and others to meaningfully compare companies, contracts and industries.

The IFRS Foundation has published a webcast on the transition requirements faced when applying IFRS 17 Insurance Contracts for the first time, which should help companies with implementation.

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