IFRS 17 will affect how reinsurers conduct business

October 2018

A guide to the challenges ahead

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.

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Billy Wong

Partner, PwC China

Tel: +[852] 2289 1259

Chris Hancorn

Partner, PwC China

Tel: +[852] 2289 1177

Lars Nielsen

Hong Kong Insurance Leader, PwC China

Tel: +[852] 2289 2722

Maurizio Busti

Actuarial Leader, Greater China and South East Asia, PwC Hong Kong

Tel: +[852] 2289 1166

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