IFRS Publishes Article for Investors on Proposed Amendments to IFRS 17
IFRS published an Investor Perspectives article by Nick Anderson, a member of IASB, that offers insight into the new disclosures IASB is proposing as part of a package of targeted amendments to the IFRS 17 on insurance contracts. The article discusses two proposed amendments that would make explaining financial results to investors easier for some insurers. The proposed amendments are new measurement requirements and the accompanying new disclosures relate to the commissions paid on short-term insurance contracts with expected renewals and to the profit recognition on long-term insurance contracts with investment returns.
IASB had issued an exposure draft, in June 2019, that proposed targeted amendments to IFRS 17 to respond to concerns and challenges raised by stakeholders as IFRS 17 is being implemented. IASB proposed targeted amendments to reduce the cost and effort of preparing for IFRS 17 and to make it easier for insurers to explain their financial results to investors. As part of the amendments package, IASB proposed to defer the start date of IFRS 17 to January 01, 2022, giving insurers an extra year to get ready. Deferring the start date by one year reflects a careful balance between the urgent need for investors to have better information about the financial performance of insurers and giving insurers certainty about their IFRS 17 project timelines, in the light of the Board’s decision to consider amending the standard.
Keywords: International, Insurance, Insurance Contracts, IFRS 17, Investor Perspectives, Disclosures, IASB, IFRS
Featured Experts

Gavin Conn
Experienced life actuary; background in economic capital modeling; ALM specialist; IFRS 17 researcher

David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings

Cassandra Hannibal
Life insurance actuary; risk management and economic capital specialist
Previous Article
EBA Issues Opinion on AML/CFT Concerns from Prudential PerspectiveRelated Articles
EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
FSB Sets Out Work Priorities for 2021
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU Publishes Corrigendum to Revised Capital Requirements Regulation
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs Issue Statement on Application of Sustainability Disclosures Rule
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC Consults on Crisis Management and Deposit Insurance Frameworks
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA Proposes Standards for Supervisory Cooperation Under IFD
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE Addresses Banks in Scope of First Resolvability Assessment
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.