IFRS 17 to lift insurance investors
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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, ...
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