Insurers’ full-year reporting under IFRS 17 and IFRS 9

Global IFRS Institute | Insurance | Real-time IFRS 17

• What are our key observations?
• What else did we look at?
  
• What’s next?

Continuing our ongoing analysis of insurers’ reporting on implementing the new accounting standards –
IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments – we have analysed the full-year reports of 53 insurers for the year ended 31 December 2023. We now share our key observations on:

• the IFRS 17 and IFRS 9 accounting policies, disclosures and significant judgements applied by insurers;
• the impacts of IFRS 17 on key performance indicators (KPIs); and
  
• transition to IFRS 17 and IFRS 9.

Generally, more insurers are providing company-specific accounting policies and more detail of their methodology compared with their half-year reports. Our other key observations included the following.

Accounting policies, disclosures and significant judgements

• Level of detail and specificity provided varied – e.g. on the methodologies used to determine discount rates, how coverage units are determined to recognise the contractual service margin (CSM) in profit or loss and judgements made in selecting measurement models.
• A common set of accounting principles and benchmarks for disclosures under IFRS 17 allowed greater comparison between insurers’ disclosures; however, some differences remain. 

Key performance indicators (KPIs)

• Insurers’ KPIs across all sectors incorporate IFRS 17 and IFRS 9. 
• Many Life & Health insurers have integrated the CSM into their KPIs, including metrics for new business, profitability and company value. 
• Non-life insurers’ KPIs showed little change; however, some incorporated specific IFRS 17 line items (e.g. insurance revenue) and redefined combined ratios.

Transition to IFRS 17 and IFRS 9

• Since adopting IFRS 9 and IFRS 17, insurers have reported a reduction in accounting mismatches and in income statement volatility. 

Our observations in this report are based on our understanding and interpretation of what insurers have disclosed so far. We expect further information to become available in future periods, which will enable us to provide more insightful analysis and comparisons.

We also provide an update to our previous analysis on:

• the impact on opening equity from adopting IFRS 17 and IFRS 9; and
• insurers’ transition methodology and their related disclosures.

Read our analysis of insurers’ first full-year reports under IFRS 17 and IFRS 9.

Visit and bookmark our Real-time IFRS 17 page for more information and look out for future issues in our series.