Revised standard includes changes in key areas and a deferred effective date to 2023 to address stakeholder comments
Revised standard includes changes in key areas and a deferred effective date to 2023 to ad
The Board’s decisions to amend IFRS 17 Insurance Contracts in eight important areas and set a 2023 effective date for the new standard allows you to revisit implementation plans and to make sure that you’ve got a robust roadmap to deliver 2023 in safety.
Our updated publication First Impressions contains detailed analysis and insight on the amended standard. For a high-level summary of the amendments, take a look at these videos and animations.
Insurers are now 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.
The risk mitigation option that is available when derivatives are used to mitigate the financial risk of direct participating contracts has been extended. It is now also available when reinsurance contracts held or non-derivative financial instruments at fair value through profit or loss (FVTPL) are used.
The Board has added 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.
KPMG global IFRS insurance leader
KPMG global lead, insurance accounting change
We would like to acknowledge the principal authors of our communications on the June 2020 revised version of IFRS 17: Alana Hudson, Bob Owel and India Preswick.