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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 2023

Proposals to amend the new standard in seven areas and defer its effective date to 2023

Move ahead with confidence towards your IFRS 17 implementation in 2023

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.

► Video summary   ► High‑level guide   ► Detailed analysis

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

New on the Horizon, the high-level guide and videos were developed in June 2019 for the Amendments to IFRS 17 Exposure Draft.

The proposed amendments to IFRS 17 Insurance Contracts were published in June 2019. The key proposals were a one-year deferral of the effective date of IFRS 17 (since deferred a further year, to 1 January 2023) 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.

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

Watch our video           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 home.Kpmg/ifrs17 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.

2020 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 15 Canada Square, London, E14 5GL, UK.