This article was originally published in the Brand Finance Insurance 100 2026.
The introduction of IFRS 17 represents a fundamental shift in how insurers report financial performance. By moving toward service-based revenue recognition and introducing metrics such as the Contractual Service Margin (CSM), IFRS 17 aims to enhance transparency and comparability across the sector.
However, this increased transparency also introduces complexity. Traditional metrics such as premiums are less indicative of value, and profitability is recognised over time, requiring more nuanced interpretation. For brand and marketing teams, this creates a new imperative: to translate financial complexity into clear and credible narratives.
As stakeholders place greater emphasis on understanding long-term value creation, insurers that can clearly articulate their performance and strategy across finance, communications and brand are better positioned to build trust and sustain confidence among both customers and investors.
IFRS 17 and life insurance - Why life insurance feels it the most
IFRS 17 is a new global accounting standard for insurance companies, and life insurers are feeling its impact more than anyone else. The main reason is simple; life insurance policies can last 20, 30, or even 40 years. Under the new rules, companies must calculate the value of future payouts using today's interest rates. Even a small rate change can cause huge swings in reported numbers, which was not an issue under the old rules.
Furthermore, IFRS 17 dismantles legacy profit recognition models. Historically, life insurers could recognize a significant portion of a policy’s projected lifetime profit almost immediately upon underwriting. IFRS 17 strictly bans this practice. Profits can no longer be booked upfront, they must be held in reserve and released gradually over time as the insurance services are physically provided.
While this transition has dramatically altered how immediate performance is presented on paper, the world’s leading insurance brands continue to demonstrate remarkable resilience. Top-tier global insurers have maintained steady upward trajectories in overall brand value despite navigating this complex regulatory shift.
For instance, Allianz, the world's second-ranked insurance brand in 2026, grew its brand value by 31% to USD34.9 billion, while Zurich recorded 27% growth to USD12.9 billion and Ping An Insurance, the sector's highest-valued brand, expanded by 19% to USD40.0 billion.
Collectively, these three brands alone added over USD17 billion in combined brand value year-on-year. This clear commercial growth highlights that while accounting reporting structures fluctuate under new standards, the core marketplace strength and long-term value of leading insurance brands remain firmly intact.
What it means for brand perception
IFRS 17 also changes how insurance brands look to the outside world and not always in comfortable ways.
In the past, insurers could pick from different accounting methods, which sometimes made it hard for outsiders to tell how well a company was really doing. Under IFRS 17, those shortcuts are gone. Good companies will shine more clearly but so will the ones that were hiding behind messy numbers.
The new rules also force companies to openly report losses on any product lines that are losing money. This is called flagging an "onerous" contract group. If a well-known insurer has to do this publicly, it can damage trust, investors and customers may start to question whether that part of the business is broken.
Finally, profits can no longer be booked all at once. They are spread out over the life of the policy. Some brands used to look very profitable by booking big numbers early on that will no longer be possible. But for brands that are built on steady, long-term value, this change actually works in their favor, they will look more reliable and trustworthy over time.
Although IFRS 17 took effect in January 2023, an estimated 15–25% of insurers required to follow it have not yet met all the requirements. Smaller companies and those in emerging markets; particularly across Asia, the Middle East, and Africa struggle the most, often lacking the budget and technical resources to make the switch. Common gaps include incomplete disclosures and corrections to earlier financial statements.
What about GAAP brands?
Not all insurers are required to follow IFRS 17. Companies reporting under local GAAP; such as US GAAP used by American insurers are exempt and continue using their own standards. This is much like how the old IFRS 4 allowed local GAAP practices to carry on. In effect, many well-known insurance brands are still working under rules closer to IFRS 4 than IFRS 17, making true global comparisons difficult.
What this means going forward
Until all insurers whether IFRS or GAAP reporters, are working from a consistent framework, comparing insurance companies across borders remains a challenge. Closing the compliance gap, especially for life insurers, is key to delivering the transparency and fairness that IFRS 17 was designed to bring.
Implications for Brand Value creation
Taking it together, these forces point to a fundamental shift in how brand value is created in the insurance sector. First, the basis of competition is moving from visibility to selection. As AI mediates customer decision-making, being included in recommendations becomes more important than being widely visible across channels.
Second, the effectiveness of large brand portfolios may decline. Where AI compresses choice, the incremental value of multiple brands is reduced, placing greater emphasis on the strength and clarity of individual brands.
Trust remains a top driver of value, a position it has held since at least 2022 and its importance has only been reinforced by today's economic and geopolitical uncertainty. Strong brands support resilience by instilling confidence among customers and investors alike.
Finally, the ability to communicate clearly is becoming a competitive advantage. As IFRS 17 brings greater transparency but also added complexity, consistent and brand-led narratives are becoming essential.
Conclusion
The insurance industry is being reshaped by a combination of technological, economic, and regulatory forces. AI is transforming how customers choose insurers. Geopolitical and financial risks are redefining what they value. IFRS 17 is changing how insurers explain their performance.
Across all three, the role of brand is becoming more central. In this evolving landscape, the strongest insurance brands will be those that are not only visible, but selected, trusted, and clearly understood positioning brand as a key driver of long-term value creation in the sector.
