The introduction of IFRS 17 Insurance Contracts (IFRS 17) has marked a transformative period for the insurance industry, signalling significant change to how insurance contracts are accounted for globally.
The transition from IFRS 4 Insurance Contracts (IFRS 4) to IFRS 17 has not only altered the way in which technical insurance liabilities and profits are recognised and measured, it has also introduced new complexities in the calculation of taxable income.
Insurers with 31 December year-ends have reported 2023 year-end results under the new standard for the first time. This has been a period of intense adjustment as insurers endeavoured to understand the impacts of IFRS 17 on taxable income and overall tax liabilities for the 2023 and subsequent financial years.
