On transition to IFRS 17, the standard is required to be applied retrospectively wherever possible - going back to when contracts were first issued. However, where this isn't possible, there are choices available. These can involve a trade-off between the level of future profit, the impact on equity, and operational considerations. The actions taken and investments made now will fundamentally dictate the impacts on transition and future profit emergence on the in-force business.
While many see transition as the biggest challenge in their implementation programme, it is an opportunity for companies to manage the financial and operational implications of moving to the new standard by taking informed decisions and making targeted investments.