Insurance Contracts in the Public Sector
The amending standard Insurance Contracts in the Public Sector adds public sector modifications to PBE IFRS 17 Insurance Contracts to include public sector entities and to ensure that this Standard is suitable for this sector.
Commencement and Application
Application of these amendments is required for accounting periods beginning on or after
1 January 2026. Application is permitted for accounting periods that begin before
1 January 2026 but have not ended or do not end before 20 July 2023.
Key public sector modifications include:
- information on how to identify arrangements to which PBE IFRS 17 should apply
- specific exemptions relating to sub-grouping contracts
- an amendment to the initial recognition requirements
- guidance on coverage periods
- an accounting policy choice on liability measurement when applying the premium allocation approach
- a specific grandfathering transition requirement.