The European Financial Reporting Advisory Group has recommended that the European Commission postpone its review of the exemption allowing EU insurers to depart from the IFRS 17 annual cohort requirement for intergenerationally mutualised and cash flow matched contracts. EFRAG considers that changing or removing the widely used exemption before the International Accounting Standards Board completes its post-implementation review of IFRS 17 could cause unnecessary disruption and significant costs for insurers across the European Union and European Economic Area. The Commission is required to review the exemption by Dec. 31, 2027, taking the IASB’s findings into account. However, IASB discussions on when to begin the post-implementation review are not expected until the fourth quarter of 2026, making completion sufficiently ahead of the EU deadline unlikely.
2026-09-25European Financial Reporting Advisory Group
European Financial Reporting Advisory Group recommends postponing EU review of IFRS 17 annual cohort exemption
The European Financial Reporting Advisory Group has recommended postponing the EU review of the IFRS 17 annual cohort exemption until the IASB completes its post-implementation review. It warned that changing or removing the widely used exemption earlier could cause significant costs and unnecessary disruption for insurers.