What is IFRS 17?
IFRS 17, effective on Jan. 1, 2023, standardizes insurance accounting at a global level to improve comparability, increase transparency and provide the information required to assess the impact of insurance contracts on the insurer’s financial position, financial performance, cash flows and risk exposure. This standard not only affects the profit, equity, insurance liabilities and financial reports of insurers, but also their information technology (IT) models and structures.
The standard applies to companies who have:
- Insurance contracts, including re-insurance contracts issued
- Re-insurance contracts maintained by the company
- Investment contracts with voluntary participation feature, provided that the insurer also issues insurance contracts