Insurance Accounting Change

The International Accounting Standards Board (the Board) insurance contracts standard, IFRS 17, heralds fundamental changes to international insurance accounting. Once implemented, users of financial statements can expect increased transparency on the profitability of new and in-force business – offering greater insight into insurers' financial health than ever before.

The new standard brings both benefits and challenges for insurers. The date the new standard comes into effect is January 1, 2023 - companies have just months until the transition date of 1 January 2022. That may still seem a long way off, but the implementation effort required will be significant and insurers should get started now.