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Greater comparability and transparency
"IFRS 17 will give users of financial statements a whole new perspective. For the first time, insurers will be on a level footing internationally. It will open up the 'black box' of current insurance accounting.
"The ways in which analysts interpret and compare companies will change. Increased transparency will give users more insight into an insurer's financialy health than ever before."
What's the issue?
- Analysts currently have to adjust insurance companies' financial positions and performance to be able to compare them.
- IFRS 17 increases transparency about profitability and will add comparability.
The changes could significantly affect insurers'
- Profitability patterns
- Volatility of financial results and equity
- Level of transparency about profit drivers
- Equity levels
