IFRS 17 reporting is here: WTW disclosure analysis

WTW’s global analysis of full year 2023 insurance reporting under IFRS 17, for 89 insurers and reinsurers (including 34 large multinationals) publishing by 30 April 2024, has shown that despite the industry spending $20bn to date on IFRS 17 implementation, comparing results across the sector remains complex and publication timetables have slowed.

Key findings from our analysis include:

1. Huge differences exist in IFRS 17 methodologies and choice/definition of KPIs. It remains challenging for analysts and investors to meaningfully compare results across the insurance sector.
2. Understanding the sensitivities, analyses of movement, growth measures and reconciliations to other metrics remains key to assessing insurers’ performance and prospects.
3. Delays in publication dates and key information now only being available in annual reports (not earlier investor disclosures) means that meaningful comparisons across the sector are now only possible circa one month later than under IFRS 4.
4. Many insurers emphasise that IFRS 17 has not had a material impact on the way the business is run; strategy, dividend paying capacity and non-IFRS key metrics remain unaffected.

Provided lessons are learnt, we believe well-targeted operational improvements can lead to much greater benefits for both insurance management and investors going forwards.

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If you have questions relating to this analysis, or would like us to help with your plans going forwards, please contact your usual WTW consultant or email.