Прилагането на МСФО 17 в общото застраховане в България: кой модел за признаване на премийния приход бе избран?
Implementing IFRS 17 In Bulgaria’s General Insurance Sector: Which Model for Insurance Revenue Recognition Has Been Chosen?

Author(s): Nigohos Kanaryan
Subject(s): Economy, Financial Markets, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: IFRS 17; general insurance; insurance premiums
Summary/Abstract: The adoption of IFRS 17 Insurance Contracts marks a fundamental change in the accounting practices of insurance companies by introducing new models for recognizing premium revenue. This study examines the transition to IFRS 17 by Bulgarian non-life insurance companies, focusing on the models applied for the recognition of premium income. The analysis is based on the 2023 financial statements of Bulgarian insurers. The results indicate that virtually all non-life insurance companies have adopted the Premium Allocation Approach (PAA). This model ensures a degree of operational continuity and conceptual proximity to the previous approach under IFRS 4, while introducing a clear distinction between the liability for remaining coverage (LRC) and the liability for incurred claims (LIC). Despite the smooth transition, there remain significant differences in the depth and structure of disclosures across companies.

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