Nairobi, Jan. 11 -- Effective January 1, 2023, insurance companies entered a new financial reporting standard known as International Financial Reporting Standard 17 (IFRS 17).

Fundamentally, the standard changes profitability measurement in insurance companies.

Insurance contracts say that you are receiving a premium in advance, and then there is an expectation of claims in the future.

Of course, actuaries- the professionals who price the insurance contracts- would be looking at the profitability and the modelling of that particular contract or a group of contracts to price with a return on capital in mind.

Nonetheless, measuring the profitability of longer-dated contracts was already complicated under the old standard.

In addition, ...