Revised IFRS 17 Insurance Contracts

Revised IFRS 17 Insurance Contracts

Revised standard includes changes in key areas and a deferred effective date to 2023

Revised standard includes changes in key areas and a deferred effective date to 2023

Move ahead with confidence towards your IFRS 17 transition

The Board’s decisions to amend IFRS 17 Insurance Contracts in eight important areas and set a 2023 effective date for the new standard allows you to revisit implementation plans and to make sure that you’ve got a robust roadmap to deliver 2023 in safety.

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Our updated publication First Impressions contains detailed analysis and insight on the amended standard. For a high-level summary of the amendments, take a look at these videos and animations.


Effective date of IFRS 17

The amendments to IFRS 17 include a two-year deferral of the effective date and the fixed expiry date of the temporary exemption from applying IFRS 9 Financial Instruments granted to insurers meeting certain criteria.

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Credit cards and loans that provide insurance coverage

Preparers of financial statements are no longer required to apply IFRS 17 to certain credit cards and similar arrangements, and loans that provide insurance coverage.

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Accounting for investment services

The profit recognition pattern for insurance contracts under IFRS 17 has been amended to reflect insurance coverage and any investment services provided.

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Accounting for insurance acquisition cash flows

Insurers are now required to allocate part of the insurance acquisition cash flows directly attributable to newly issued contracts to expected contract renewals, meaning that such newly issued contracts are less likely to be onerous.

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Risk mitigation for direct participating contracts

The risk mitigation option that is available when derivatives are used to mitigate the financial risk of direct participating contracts has been extended. It is now also available when reinsurance contracts held or non-derivative financial instruments at fair value through profit or loss (FVTPL) are used.

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Presentation of insurance contract assets and liabilities

Insurance contracts are now required to be presented on the balance sheet at the portfolio level – a higher level than originally required under IFRS 17.

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Reinsurance of onerous contracts

The amendments address accounting mismatches that arise when an entity reinsures onerous contracts and recognises losses on the underlying contracts on initial recognition.

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Accounting for acquired claims liabilities on transition

The Board has added a further modification to the transition requirements for claims liabilities acquired by an entity in a business combination or portfolio transfer to provide practical relief to insurers.

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Find out more

Visit home.Kpmg/ifrs17 to read all of our insights on the new insurance contracts standard. Also, our insights on insurers’ progress with IFRS 17 and IFRS 9 implementation can be found on our In it to win it web page.

Key contacts

Joachim Kölschbach

KPMG global IFRS insurance leader

Mary Trussell

KPMG global lead, insurance accounting change


We would like to acknowledge the principal authors of our communications on the June 2020 revised version of IFRS 17: Alana Hudson, Bob Owel and India Preswick.

2020 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 15 Canada Square, London, E14 5GL, UK.