IFRS 17: First look at FY23 disclosures in Australia

June 28, 2024

Following many years of significant investment by insurance companies, IFRS 17 - Insurance contracts is now live and December year-end insurance companies have reported under the new standard for the first time.

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This publication compares the disclosures made by a selection of Australian life (8) and general (4) insurers, including both direct writers and reinsurance companies, in their annual financial statements for the year ending December 2023. These statements, published in the first quarter of 2024, are the first to be prepared under IFRS 17.

Despite certain disclosures being mandatory at FY23, divergences in approaches, calibrations, and the level of granularity adopted are observed. Some stakeholders, such as analysts, anticipated greater comparability post-IFRS 17. While there is now a consistent framework under which Australia and other markets are required to report under IFRS 17, there remains divergence among insurers within the Australian market.

Insurers are not expected to make wholesale changes over the short term, though some convergence in approaches or calibrations may occur over time.

“IFRS 17, as a new standard, aims to enhance the comparability of financial reporting across the insurance industry. However, its implementation requires significant effort and interpretation, leading to a wide range of outcomes in the market. Over time, as practices evolve both in Australia and globally, we may see further evolution of approaches and a movement towards greater consistency.”

Antonie JaggaInsurance Leader, PwC Australia

This publication has been prepared exclusively using publicly available financial information. Its primary objective is to present the range of approaches adopted across the industry through a comparison of a selection of companies. This publication is purely informational and does not contain any opinions or subjective interpretations.