The new requirements introduced by IFRS 17 will lead to changes in performance measurement.
In developing the illustrative presentations and disclosures found in Opening the black box: Demystifying IFRS 17, we identified a number of sources of potentially new information that will be available to users of insurance company financial statements.
For contracts measured using the building block approach (BBA), insurance contract revenue is unlikely to become a key performance measure. However, for most life insurers, written premiums, which it will replace, is not widely used as a measurement of performance.
While short-duration contracts measured using the premium allocation approach (PAA), insurance contract revenue will be similar to earned premium and will, most likely, replace earned premium as a key performance measure. Written premiums will no longer be presented on the face of the statement of profit or loss and other comprehensive income (SOCI), and in time, might become less widely reported as a key performance measure for short-duration contracts.