The Reforms Brought by IFRS 17 and their Effects on Financial Sustainability in the Insurance Industry

Abstract

IFRS 17 has introduced a fundamental change in the way insurance companies recognise and measure contracts, with significant implications for financial sustainability. While the main purpose of IFRS 17 is to increase the transparency and comparability of financial statements, it may also impact the long-term sustainability of the insurance sector. This article examines how the application of IFRS 17 can contribute to greater social and environmental responsibility among insurers, supporting the integration of ESG (environmental, social and governance) principles into their risk management strategies and financial models. The results highlight that, despite the challenges, the new standard can lead to a more stable, predictable and future-oriented insurance industry. UDC: [657:006.32]:368.021; JEL: M41