ESMA supports the endorsement of IFRS 17 Insurance Contracts

ESMA has published its response to EFRAG’s consultation on its draft advice on the endorsement of IFRS 17 Insurance Contracts. In the response, ESMA has supported the endorsement.

ESMA has noted that the principles for the aggregation of contracts that form an integral part of the new measurement model in IFRS 17 play a key role promoting greater transparency and consistency in accounting for insurance contract. ESMA has recommended that EFRAG consider these aspects when finalising its advice, including the requirement to group insurance contracts that are issued no more than one-year apart (annual cohort requirement).

The response letter may be accessed here.