IFRS 17 Challenges for Reinsurance : Fitting a Square Peg in a Round Hole

This article provides an insightful overview of the challenges encountered by the insurance industry when applying the requirements of IFRS 17 to reinsurance contracts. Through the metaphor "Fitting a Square Peg in a Round Hole," the author effectively captures the complexities and difficulties that arise when adapting existing accounting practices for reinsurance contracts to comply with the new standard. The abstract emphasizes the unique hurdles faced by insurance companies in the accounting of passive reinsurance, emphasizing the need to reconcile traditional methods with the rigorous demands of IFRS 17. By delving into specific challenges and offering potential solutions, the article aims to shed light on the intricacies of implementing IFRS 17 and the resulting mismatches in financial reporting, including their impact on Solvency II practices