IFRS 17 – The EU way

After a lengthy and, at times, controversial process, IFRS 17, Insurance Contracts, has been adopted into EU law. ¹ Insurance Europe, the trade association for European insurance companies, and many of its members will be delighted because the Union has made one of the standard’s key requirements optional. The IASB, some EU authorities, and many investors and analysts will be less pleased about this outcome. For example, the credit rating agency, Fitch said: “EU insurers’ IFRS 17 financial statements will not be as helpful for users as they could be, as they will lack certain profitability information.” ²