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IFRS 17 Insurance Contracts is a new accounting standard that has had a significant impact on how insurance companies account for their contracts. It was issued by the International Accounting Standards Board (IASB) in 2017 and became effective in 2023.
IFRS 17 requires insurance companies to:
- recognize the fair value of their insurance contracts on their balance sheets.
- recognize a profit or loss over the life of an insurance contract as the risks and benefits of the contract are transferred to the policyholder.
IFRS 17 also provides guidance on a number of other topics, such as reinsurance contracts, investment contracts with discretionary participation features, and insurance liabilities..
This blog post compiles for you guidance made available by the Big 4 and other Audit firms to help you with the learning and understanding of IFRS 17 Insurance contracts.
Fun fact:
The largest insurance company in the world is Berkshire Hathaway, which is led by Warren Buffett. Berkshire Hathaway has a market capitalization of over $600 billion, and it insures a wide range of risks, including property and casualty, life, and reinsurance.
The most expensive insurance claim in history was the claim for the September 11th attacks. The total cost of the insurance claims for the September 11th attacks was over $40 billion.
The most unusual insurance policy ever issued was a policy for the engagement ring of Elizabeth Taylor. The policy was for $1 million, and it covered the ring against loss, theft, or damage.
IFRS 17 is one of the most complex accounting standards ever issued. It took the IASB over 10 years to develop IFRS 17.
IFRS 17 has been implemented by insurance companies in over 140 countries around the world.
IFRS 17 is nicknamed "the biggest accounting change in insurance in 200 years."
The below resources (PDF, videos and eLearns) provide comprehensive coverage of IFRS 17 Insurance contracts, including its key requirements and practical guidance. Whether you're new to IFRS 17 or looking for a refresher, these resources are valuable.
IFRS 17 Insurance contracts practical guide
Source: KPMG
KPMG Insurance contracts - IFRS 17 Pdf
Source: EY
EY Insurance contracts - IFRS 17 Pdf
Video
Source: PwC
PwC Insurance contracts - IFRS 17 video
Source: IFRS Foundation
IFRS Foundation Insurance contracts - IFRS 17 video
PS: All resources above are sourced directly from the public domain of the owners as made publicly available by them and are compiled here by IFRS IS EASY for your convenience.
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