The method for amortising the CSM for annuity contracts has been heavily debated in the UK as part of the implementation of IFRS 17 Insurance Contracts
This debate has arisen because of the continued prevalence and growing importance of annuities in the UK insurance market.
The UK Endorsement Board proposed that UK insurers and accounting firms engage with the IASB in relation with the issue. ICAEW’s Insurance Committee has co-ordinated the debate around the subject and has drafted a letter to the IASB, which sets out the two alternative approaches that have been discussed in the UK market.
Letter to the IASB
Please view the letter drafted by ICAEW members from UK insurers and accounting firms following UK Endorsement Board’s suggestion of engagement with the IASB on the alternative approaches to the contractual service margin amortisation for annuity contracts under IFRS 17.
