IFRS 17 has been "live" across most African jurisdictions for long enough that the early implementation noise has died down. What remains is the harder question: how should cedants and their reinsurance partners actually structure programmes in a way that reads cleanly under the new framework?
What changed in practice
IFRS 17 reorganised how insurance contracts are measured and presented — but for working underwriters, three things matter most day-to-day:
- The contractual service margin (CSM). Profitability is now recognised over the coverage period in a way the prior framework didn't require. That puts a sharper lens on how cessions affect earnings emergence.
- Onerous contract testing. Loss-making contracts must be recognised immediately. Cedants need to be confident their reinsurance treats those contracts the way they expect.
- Reinsurance held as a separate asset. Reinsurance is no longer netted against gross business in the same way. The reporting clarity is welcome; the operational lift is not trivial.
What we are seeing on placements
Across recent placements with African cedants, three patterns recur:
- Quota-share structures are being re-examined. The interaction between QS arrangements and the CSM can produce earnings volatility that surprises finance teams. Re-structuring — particularly around commission profiles — can smooth this.
- Loss-portfolio transfers are getting more attention. Where legacy reserves create ongoing IFRS 17 administrative complexity, an LPT can simplify the book. Markets exist for the right risks at the right price.
- Reporting deadlines are eating timing windows. Renewals that historically closed comfortably in December are now being pushed earlier so reporting cycles can absorb them.
A note on data
The framework is generous to cedants who have invested in data. Cohort assignment, the locked-in discount rate, and risk-adjustment estimates all reward strong actuarial infrastructure. Where data quality is thinner, we work with cedants on practical, defensible assumptions — and on placement structures that don't punish them for getting better over time.
Working with Anchor
We're not auditors and we don't write IFRS 17 policy. What we do is structure reinsurance that fits the framework cleanly — so the placement supports the reporting rather than complicating it. If you'd like a working conversation rather than a slide deck, the desk is at underwriting@anchorrisktransfer.com.
