With the IFRS 17 accounting standard, insurers need to understand the patterns of profit emergence that arise under the standard, and how current business and methodology decisions affect such patterns. As a principles-based standard, insurers must make several immediate decisions about their specific implementation. These decisions can have a major impact on the timing of reported profit and loss.
The IFRS 17 accounting standard represents a notable change for insurers in more than 100 countries. Originally, the standard was to have taken effect in the 2021 reporting year. However, the International Accounting Standards Board (the Board) has decided to delay the effective date until the 2023 reporting year.
The International Financial Reporting Standard (IFRS) 17 requires liability cash flows to be discounted at rates that reflect the characteristics of the cash flows, including their liquidity
This paper forms part of a series of high-level papers designed to provide an introduction to different features of the risk adjustment that should be considered in advance of implementation.
