Insurance Review: Fall 2009

The pace of change: Coping in today’s new reality

PricewaterhouseCoopers' Insurance Review offers a Canadian perspective on the challenges and opportunities in the insurance industry. The articles in the Fall 2009 issue are:

• Claims transformation – A critical strategy to staying ahead
• Long and whining road – Harmonized Sales Tax points insurers need to consider
• The pace of change: Coping in today’s economic, regulatory and reporting environment
• Changes affecting the accounting for investments in debt securities and loans and receivables – Canadian GAAP changes in 2009
• Fair value hierarchy disclosures – Understanding and applying the new Canadian GAAP requirements in 2009
• Observations on the OSFI Draft Advisory on conversion to IFRS
• Breaking news – US proposed changes for accounting for acquisitions costs

Insurers are faced with numerous trends that are driving change within the industry. These trends are changing the way that insurers must interact with customers and service providers in order to stay ahead of the competition and maintain their bottom line. Nowhere is change having a bigger impact than in the claims area. This article discusses the forces which are increasing the pressure on claims and the guiding principles for effective claims transformation.

Claims transformation – A critical strategy to staying ahead (68 KB) Download the full PDF article.

For all insurers, the harmonized sales tax (HST) has many touch points requiring systems, documentation, costing and pricing changes. This article illuminates some of the less obvious practical issues now facing internal HST implementation teams. It highlights areas where upgrading internal knowledge of HST will improve decision making, lower delivered cost to clients and reduce claims costs. While some concerns are shared by all insurers, there are a number of features peculiar to either the life or property and casualty sectors.

Long and whining road – Harmonized Sales Tax points insurers need to consider 92 KB) Download the full PDF article.

The last several years have been a period of intense change and challenge for Canadian and global insurers. In addition to dealing with the consequences of the worst financial crisis in decades, insurers have had to cope with fundamental changes in the accounting for and taxation of investments, increased regulatory focus, uncertainty over the future of capital management and executing business strategies in a softening market. For help with the change management process, read this article.

The pace of change: Coping in today’s economic, regulatory and reporting environment (48 KB) Download the full PDF article.

In August 2009, the Accounting Standards Board amended the requirements in Section 3855, Financial Instruments – Recognition and Measurement (Section 3855) on accounting for investments in debt securities, such as government debt, corporate bonds, convertible debt, commercial paper, certain in-substance debt instruments such as term preferred shares, and securitized debt instruments. There have been consequential amendments to other aspects of Section 3855 that can affect the accounting for certain types of loans and receivables. Read about these changes in the PDF below.

Changes affecting the accounting for investments in debt securities and loans and receivables – Canadian GAAP changes in 2009 (84 KB) Download the full PDF article.

In 2009 the Accounting Standards Board amended CICA Handbook Section 3862, Financial Instruments – Disclosures (Section 3862), requiring enhanced disclosures about the relative reliability of the data, or “inputs”, used to measure the fair values of its financial instruments. The new requirements impact annual financial statements for fiscal years ending after September 30, 2009. For more information, read the article below.

Fair value hierarchy disclosures – Understanding and applying the new Canadian GAAP requirements in 2009 (108 KB) Download the full PDF article.

Drawing on input from a range of leading insurers, financial market participants and PricewaterhouseCoopers specialists from around the world, Emerging from the storm: The day after tomorrow for insurance reports how the financial crisis is set to reshape the industry, along with some of the key developments that are likely to affect particular segments and geographical markets.

Observations on the OSFI Draft Advisory on conversion to IFRS (52 KB) Download the full PDF article.

On November 19, 2009 the FASB’s Emerging Issues Task Force reached a consensus-for-exposure related to the definition and types of costs that should be considered acquisition costs by insurance entities. Get more details in PDF below.

Breaking news – US proposed changes for accounting for acquisitions costs (52 KB) Download the full PDF article.

Insurance Review: Fall 2009 (584 KB) Download the entire PDF.