Insurers Face GHS 1.2m Average Cost to Meet IFRS 17 Requirements as Implementation Costs Put Pressure on Smaller Insurance Firms
The implementation of International Financial Reporting Standard (IFRS) 17 is placing significant financial and operational demands on Ghana’s insurance industry, with smaller firms particularly exposed, according to Deloitte’s 2025/2026 Africa Insurance Outlook report.
Deloitte estimates that the average cost of IFRS 17 implementation for insurers in Ghana stands at approximately $110,000 (GHS 1.2m) covering system upgrades, actuarial software and personnel training.
The report notes that while larger insurers have been able to absorb these costs through capital investment and external consultancy support, smaller players face heightened financial strain, raising concerns about uneven compliance across the sector.
“This imbalance underscores the need for industry collaboration and regulatory support to ensure sector-wide compliance,” Deloitte stated.
The transition from IFRS 4 to IFRS 17 marks a significant shift in how insurance contracts are measured and reported, with a stronger emphasis on transparency and accuracy in financial reporting.
Under the new standard, insurers now recognise profits and expenses as they are incurred, rather than on a cash basis. Balance sheets are also required to reflect a more accurate position of liabilities and expected future benefits to policyholders.
Key components of the framework including Best Estimate Liabilities (BEL), Contractual Service Margin (CSM) and Risk Adjustment (RA), have been introduced to enhance the measurement of obligations and expected returns.
Deloitte explains that the new accounting treatment aligns revenue recognition with the delivery of insurance services, thereby strengthening the link between financial performance and value delivered to policyholders.
Despite full adoption of IFRS 17 in Ghana, the report highlights persistent implementation challenges, including outdated IT systems and limited actuarial capacity within the industry.
“Addressing these gaps will be critical not only for IFRS 17 compliance but also for building a more competitive, resilient and future-ready industry,” the report noted.
Deloitte further describes IFRS 17 as a pivotal opportunity to reposition Ghana’s insurance sector, provided critical deficiencies in systems, data infrastructure and skilled personnel are addressed.
The report concludes that overcoming these constraints will be essential to ensuring long-term resilience, enhancing competitiveness, and enabling the insurance industry to play a stronger role in supporting economic development.
