IFRS insurance contracts standard will have far reaching impacts for life and P&C insurers and reinsurers.
The IASB’s long-anticipated insurance contracts standard – IFRS 17 – has finally been published, heralding fundamental changes to international insurance accounting. Once implemented, users of financial statements can expect increased transparency on the profitability of new and in-force business – offering greater insight into an insurer’s financial health than ever before.
The new standard brings both benefits and challenges for insurers. The date the new standard comes into effect is January 1, 2021 – That may seem a long way off, but the implementation effort required will be significant, and insurers should get started now.
This is a historic moment for everyone in the insurance industry. The waiting is over and it is imperative that insurers start to prepare themselves to implement IFRS 17 and ensure clear, concise and robust communication to shareholders, investors and other key stakeholders.
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