General Impacts
IFRS 17 - Insurance contracts may impact Statement of Financial Positions, Statement of Other Comprehensive Income, Statement of Cash Flow, and Notes to the Financial Statements.
IFRS 17’s measurement models will have different impacts on certain items in financial statement, mainly "premiums" and "insurance contract liabilities".
Premiums: the recognition is no longer based on due premiums or premiums received but will mainly include changes in the liability for remaining coverage and release of insurance acquisition cash flows.
Insurance contract liabilities: according to both IFRS 4 and IFRS 17, insurance contract liabilities include the liability for incurred claims and the liability for remaining coverage. The most striking difference in IFRS 17 is that the liability for remaining coverage includes contractual service margin.
Thus, contractual service margin can be seen as the key factor to reflect the current and future development of insurance companies through premiums and insurance contract liabilities.
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