How IFRS 17 is reshaping insurance finance and actuarial functions

Introduced as a new global insurance accounting standard, IFRS 17 marks a fundamental shift in how insurers recognise revenue, measure risk, and communicate financial performance. 

Far beyond a technical update, the standard is reshaping the roles of finance and actuarial teams - from how they report and plan, to how they collaborate, invest in technology, and support strategic decision-making. This article explores how IFRS 17 is redefining the finance and actuarial landscape.

Strategic repositioning of the finance and actuarial functions

IFRS 17 changes the roles of finance and actuarial departments, making them vital strategic business partners. 

New metrics like the Contractual Service Margin (“CSM”), Risk Adjustment, and Insurance Service Result are pushing finance leaders to provide deeper insight into value creation. 

This shift is about more than numbers - it’s about empowering CFOs and boards with forward-looking views on profitability, risk, and performance. Both functions are no longer just about compliance or valuations but are now integral to driving strategic decisions.

Enhanced cross-functional collaboration

Meeting IFRS 17’s demands has strengthened collaboration between finance, actuarial, and IT. Shared models, aligned assumptions, and common controls are now essential.

New hybrid roles are emerging, blending financial, actuarial, and data expertise. This cross-functional integration is key to accurate reporting and responsive planning.

This partnership ensures consistent liability valuations and accurate financial statements while enabling faster responses to market changes.

Performance management and business planning

Traditional metrics like Gross Written Premiums (“GWP”) no longer define performance. IFRS 17 is transforming financial planning by shifting focus from short-term earnings to long-term value and capital efficiency. 

Insurers must now forecast future profit emergence through CSM run-off and understand how assumption changes affect outcomes. Actuaries must understand how assumptions, claims experience, and pricing decisions affect the CSM. 

Finance teams are embedding these insights into planning, pricing, and reinsurance decisions.

Redefining the role of technology

Technology has become central to success under IFRS 17 and is playing a strategic role in enabling finance, actuarial, and IT teams to work together effectively. 

The standard’s complexity demands advanced accounting engines, actuarial platforms, and integrated data systems that support shared models and aligned assumptions, and analytics - while also addressing the opportunities or challenges of managing multiple bases like Solvency II. Insurers are investing in scalable, cloud-based solutions to streamline reporting, enable responsive planning, and deliver deeper insights. 

Technology is no longer just a support function - it is central to driving cross-functional collaboration.

New financial reporting paradigm

IFRS 17 introduces service-based revenue and detailed disclosures that better reflect the economics of insurance. 

This change demands greater judgment, faster data processing, and more robust controls. Quarterly reporting is now more complex, requiring integrated systems and tighter coordination across teams. 

Auditors are increasing scrutiny on methodology consistency, assumption justification, and data lineage. Regulators are expected to become more prescriptive about disclosure quality, comparability, and governance.

Actuaries have a crucial role in ensuring that disclosures regarding assumptions, risk adjustments, and model choices are technically accurate and clearly presented.

Benchmarking in a post-implementation world

Insurers are beginning to benchmark key IFRS 17 metrics across peers which is driving a new wave of introspection and refinement. Some insurers have already adjusted their accounting policies, often in response to audit feedback or peer comparisons. 

As more data becomes publicly available, industry-wide benchmarks will emerge - enabling insurers to assess performance not just internally, but competitively, while also enhancing transparency and comparability across the industry for analysis and investors.

This benchmarking activity is developed by actuarial teams, who are uniquely positioned to translate these metrics into actionable insights.

Turning complexity into clarity

IFRS 17 goes beyond reporting, it’s an opportunity to enhance how finance and actuarial functions drive insight and value. With the right expertise, insurers can transform complexity into clarity. Interested in discussing your organisation’s approach? We’re here to help.

We bring deep, strategic expertise to the insurance sector-helping clients navigate regulatory complexity, embrace digital transformation, and meet rising expectations around transparency and sustainability. Our multidisciplinary teams deliver tailored solutions across compliance, ESG, technology, data analytics and operational resilience.

We support insurers in adapting to evolving business models, integrating advanced technologies, and enhancing customer experience. Backed by our global network, we empower clients to stay competitive, compliant, and growth-focused in a rapidly changing market.

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