Insurance contract


Insurance Accounting Insights

The International Accounting Standards Board's decision to issue the new standard for Insurance Contracts sets the scene for well-planned implementation activities. Deloitte's Insurance Accounting Insights Publication series provides Deloitte's point of view on issues that insurers are likely to face in their IFRS 17 journey to implementation.

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Integrating Implementation for IFRS 17 and LDTI

Issue January 2020

International Financial Reporting Standard (IFRS) 17, issued by the International Accounting Standards Board (IASB) in May 2017, introduces for the first time a single insurance accounting model for all types of insurance contracts under IFRS. The key objective is to make insurance accounting transparent and consistent across the globe and align insurance accounting with IFRS accounting of other industries to improve comparability. As of now, over 120 countries have adopted or permitted IFRS 17.

U.S. is one of the few countries that have decided not to adopt IFRS 17. In fact, in August 2018, the U.S. Financial Accounting Standards Board (FASB) issued its own Accounting Standards Update (ASU) 2018-12, also known as Targeted Improvements for Long- Duration Contracts (LDTI).

IFRS 17 and Embedded Value Reporting

Issue February 2019

While the immediate challenge for many insurers around the globe is to determine accounting interpretations and methodologies for insurance contracts, and transition from existing frameworks before the effective date of 1/1/2021(*) there are other areas indirectly impacted. One of those is Embedded Value (EV) reporting.

(*) The IASB Board voted on November 14, 2018 to propose one-year deferral of the effective date of the IFRS 17 to 2022.

The influence of IFRS 17 on reward KPIs – Volatility of pay parameters and new opportunities

Issue January 2018

According to the IASB board, financial statements in the insurance sector currently do not truly reflect the nature and extent of risks embedded in insurance contracts.

Data management in the new world of insurance finance and actuarial

Issue August 2017

IFRS 17's technical requirements are expected to lead to a significant increase in data volume in the finance and actuarial functions. These requirements also accentuate the need to have high quality data that is accurate and auditable to support the financial reporting process.

This edition of Insurance Accounting insights describes how the work to address IFRS 17 fit with the approach insurance companies take on data management.

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