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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.


What happened at the May TRG meeting?

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.

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