IFRS 17 and reinsurance

The application of IFRS 17 to reinsurance has the potential to make a significant impact on your financial results.

Download our paper for our expert guidance on considerations you need to make now to avoid awkward questions when IFRS 17 starts to bite.

The reinsurance issue

The standard confirms that reinsurance needs special treatment. Reinsurance contracts held are to be valued and accounted for separately. The requirements don’t look particularly challenging at first glance, but common reporting practice for many insurers is an approximate method of ‘netting down’ (that is gross less reinsured). This won’t be adequate post-2021, and insurers that underestimate the consideration required for reinsurance as part of their IFRS 17 implementation plans could face an unpleasant surprise under the new regime.

Measure the size of your reinsurance challenge

Mismatches between underlying contracts and reinsurance arrangements can appear in several places in the valuation process, which have the potential to cause volatility in profit reporting. Our guide includes a useful mismatch checklist to help you to gauge the size of the challenge for your reinsurance.

Contact us

Susan Dreksler
Associate Director, PwC United Kingdom
Tel: +44 (0)7809 755 802
Email

Anthony Coughlan
Director, PwC United Kingdom
Tel: +44 (0)7764 902 751
Email

Alex Bertolotti
Global and UK IFRS 17 Lead, PwC United Kingdom
Tel: +44 (0)7525 298 694
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Gail Tucker
Global IFRS 17 Technical Partner and TRG Member, PwC United Kingdom
Tel: +44 (0)7712 489 634
Email

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