In 2021, insurers will apply the new accounting requirements in IFRS 17 Insurance Contracts. Since the International Accounting Standards Board (Board) issued IFRS 17 in May 2017, IASB have been providing support to insurers and others in understanding these new requirements.
Implementing IFRS 17 represents fundamental changes for some insurers. Many concepts in IFRS 17 are new; it is the first time an IFRS Standard has prescribed the measurement of insurance contracts. Because insurers currently use local requirements to account for their insurance contracts, they will approach the transition to the new accounting requirements from many different perspectives. Applying the requirements in IFRS 17 will prompt changes in insurers’ operations; for example, many insurers may have to upgrade their data, systems and processes.
IASB recognises that implementing IFRS 17 will be challenging, so a summary of the tools are released to help with the implementation of IFRS 17.