IASB proposes to further amend IFRS 17

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In transition , PwC US Jan 24, 2019

The IASB agrees to propose certain further amendments to IFRS 17 to better reflect the economics of insurance contracts.


On January 23, 2019 the IASB continued its discussions on IFRS 17. It tentatively agreed to propose amendments to IFRS 17 to:

  • Require allocation of insurance acquisition cash flows to anticipated future renewals;
  • Require recognition of a gain in profit or loss when an insurer recognizes losses on onerous underlying insurance contracts at initial recognition, to the extent that a reinsurance contract held covers the losses of each contract on a proportionate basis;
  • Expand the scope for the risk mitigation exemption for insurance contracts with direct participation features to reinsurance contracts held that are used to mitigate financial risk. However, the Board will not expand the scope of the variable fee approach to reinsurance contracts issued or held; and
  • Require consideration of the existence of an investment return service in allocating the CSM using coverage units.

The Staff plans to bring papers on the remaining implementation concerns and challenges to the Board during the first quarter of 2019. At a future meeting the Board plans to consider the package of all the proposed amendments to ensure that they comply with the criteria the Board agreed in October 2018 and will consider the need for additional disclosures as a consequence of the proposed amendments. The Board expects to publish an Exposure Draft of the amendments to IFRS 17 around the end of the first half of 2019, to be in a position to finalize amendments such that January 1, 2022 remains as the proposed effective date of IFRS 17.


To have a deeper discussion, contact:

Donald Doran

Partner, National Professional Services Group, PwC US


Marie Kling

Partner, National Professional Service Group, PwC US


Mary Saslow

Managing Director, National Professional Service Group, PwC US


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Matt Adams

US Insurance Practice Leader, PwC US

David Schenck

US Insurance Tax Leader , PwC US

Richard de Haan

Global Actuarial Leader, PwC US

Mary Saslow

Managing Director, National Professional Service Group, PwC US

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