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Amendments to IFRS 17 Insurance Contracts

Amendments to IFRS 17 Insurance Contracts

Proposals to amend the new standard in seven areas and defer its effective date to 2022

Proposals to amend IFRS 17 in seven areas and defer its effective date to 2022

It's time to step up the pace of IFRS 17 implementation

Proposals to amend IFRS 17 Insurance Contracts in seven important areas and set a 2022 effective date for the new standard, should prompt insurers to take action.

► Video summary   ► High‑level guide   ► Detailed analysis

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How can insurers make the best use of the extra year?

The proposed amendments to IFRS® 17 Insurance Contracts have been published. The key proposals are a one-year deferral of the effective date of IFRS 17 to 1 January 2022 and changes to the standard’s requirements in seven important areas.

The International Accounting Standards Board (the Board) has been monitoring and supporting IFRS 17 implementation over the past two years – its exposure draft (ED) of amendments to IFRS 17 responds to the concerns and implementation challenges raised by insurers and other stakeholders. The Board is accepting comments on the proposed amendments until 25 September 2019.

Our video and high-level guide – as well as our New on the Horizon, which contains our detailed analysis and insights on the proposals – will help you understand the changes and guide the decisions you need to make for your IFRS 17 implementation projects.

Watch our video summary            Read our high-level guide           Read our New on the Horizon


Effective date of IFRS 17

The Board is proposing a one-year deferral of the effective date of IFRS 17, and the fixed expiry date of the temporary exemption from applying IFRS 9 granted to insurers meeting certain criteria.

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Credit cards and loans that provide insurance coverage

Under the Board’s proposals, preparers of financial statements would no longer be required to apply IFRS 17 to certain credit cards and loans that provide insurance coverage.

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Accounting for investment services

The Board proposes to amend the profit recognition pattern for insurance contracts under IFRS 17 to reflect insurance coverage and any investment services provided.

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Accounting for insurance acquisition cash flows

Under the Board’s proposals, insurers would be 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 Board proposes that the risk mitigation option that is available when derivatives are used to mitigate the financial risk of direct participating contracts, would also be available when proportionate reinsurance contracts are used.

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Presentation of insurance contract assets and liabilities

The Board’s proposal would require insurance contracts to be presented on the balance sheet at the portfolio level – a higher level than currently required.

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Reinsurance of onerous contracts

The Board’s proposal would 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 is proposing to add 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 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's global IFRS insurance leader

Mary Trussell

KPMG's global lead, insurance accounting change


We would like to acknowledge the principal authors of our communications on the June 2019 exposure draft of the IFRS 17 amendments: Albert Chai, Alana Hudson, Hagit Keren and Lindsey Stewart.