Insurance – Transition to IFRS 17 | KPMG | GLOBAL
close
Share with your friends

Insurance – Transition to IFRS 17

Insurance – Transition to IFRS 17

The IASB's Transition Resource Group discusses implementation questions from stakeholders

The IASB's Transition Resource Group discusses implementation questions from stakeholders

Making sense of the requirements

The new insurance contracts standard, IFRS 17 Insurance Contracts, continues to raise a variety of implementation questions from stakeholders.

To help support implementation and reduce the potential for diversity in practice, the IASB has set up a Transition Resource Group (TRG), which held its second substantive meeting on 2 May 2018. 

The TRG does not have standard-setting authority, and its purpose is to provide a public forum for stakeholders to follow the discussion of questions raised on implementation. Visit the IASB website for further details.
 

Latest developments – June IASB board meeting

The IASB decided to amend the definition of the coverage period for direct participating contracts in the next cycle of annual improvements to IFRS. The amendment will clarify that the coverage period for these contracts includes periods in which the entity provides coverage for insured events or investment-related services. Find out more about this amendment in our article on measuring the CSM.

The Board also decided to amend various other aspects of IFRS 17 at the same time. These amendments would generally be minor in nature and address areas where the current wording of IFRS 17 does not achieve what the IASB intended. Find out more about these amendments in the IASB’s agenda paper (PDF 85 KB)


What happened at the last TRG meeting in May?

The TRG discussed several questions submitted by stakeholders, including:

  • combining multiple insurance contracts;
  • determining the risk adjustment for non-financial risk in a group of entities;
  • determining the boundary of certain insurance and reinsurance contracts; and
  • identifying coverage units for the CSM allocation for contracts with and without investment components.

Read our summary for a high-level overview of all topics and our observations in the articles below. You may also be interested in our summary of the February 2018 TRG meeting discussions. 


Next steps

The IASB will be informed of the TRG discussion. In particular, this includes the concerns raised by the TRG members regarding implementation challenges associated with certain matters raised during the February 2018 TRG meeting, namely: 

  • the presentation of groups of insurance contracts;
  • the accounting for premiums received when applying the premium allocation approach ; and  
  • the subsequent treatment of insurance contracts acquired in their settlement period. 

This is expected to help the Board determine what, if any, action is needed to address the implementation questions discussed. 

The TRG’s next meeting is on 26 September. Bookmark this web page, where you will find our observations of all future meetings.

We encourage you to speak to your local KPMG contact about the outcomes of this meeting and how they may impact you.


Find out more

For KPMG's insights on transitioning to the new standard, visit kpmg.com/ifrs17.

Follow 'KPMG IFRS' on LinkedIn for the latest on IFRS.

Connect with us