The International Accounting Standards Board (IASB) has recently issued IFRS 17 Insurance Contracts that comes to replace IFRS 4 Insurance Contracts as of 2021. The new Standard will provide investors around the world with much greater insight into the financial performance and financial position of insurers and with a better understanding of insurers’ risks.
IASB has also issued some accompanying materials, including a detailed Effects Analysis that sets out the expected costs and benefits of the new Standard. The most significant positive effect is that the new standard will require all insurance contracts to be accounted for in a consistent manner, replacing today’s multitude of different approaches.
Further information about the IFRS 17 release and related materials can be found on the dedicated IFRS webpage.