Considerable accounting changes for insurers on the way
The new insurance contracts standard, IFRS 17, aims to increase transparency and to reduce diversity in the accounting for insurance contracts. The final standard was published in June 2017 and will apply for annual periods beginning on or after January 1, 2021.
The magnitude of evolving insurance accounting change should not be underestimated, particularly when considering the impact of the new financial instruments and revenue standards. If insurers start planning now, the wave of change could open up opportunities for synergies.
On November 28, 2017, more than 400 industry professionals attended KPMG in Canada's 26th Annual Insurance Conference and discussed what's going on in the insurance industry right now: IFRS 17, new regulation and technologies, changing customer preferences, and the transformation of business models.
Our materials will help you understand the evolving proposals and assess the potential impact on your company. Look out for further updates.
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Earmarked for 2021, IFRS 17 will mark a wholesale change for insurance companies of all sizes as it will radically alter the way they report their performance. It changes financial statements (how profit is recognized, key financial metrics and disclosures), data management, IT systems, processes, level of analysis and projections. These changes are more robust than in the adoption of IFRS in 2011 since IFRS 4 grandfathered existing Canadian accounting methods for insurance contracts.