The FASB has been focused on making targeted improvements to the insurance guidance in US GAAP as part of two distinct projects, one focused on short-duration contracts and a second focused on long-duration contracts.
Hear PwC’s Anna Kajirian discuss some new FASB guidance affecting financial services companies - specifically, short duration insurance contracts, the NAV practical expedient, and collateralized financing entities.
The FASB is expected to propose significant changes to the accounting for long-duration life insurance in Q3 2016.
Insurers currently use a variety of different and largely inconsistent local approaches to measure the value of insurance contracts within their statutory financial statements. This diversity makes it difficult to compare companies and may fail to reflect the true economic value of insurance business, which can put insurers at a considerable disadvantage when competing for capital.
The FASB and IASB have been jointly deliberating insurance contract accounting with a goal of issuing a single, high-quality global standard on insurance contract accounting. CFOdirect offers a roundup of PwC’s reports and insights on the insurance contracts project.
Learn how new FASB guidance is affecting financial services companies.
Enhanced insurance contract disclosures may create new and different reporting of claim data for insurers.
The short-duration insurance contract disclosures may create new and different reporting of claim data for insurers.
If a single global insurance accounting standard is not achieved, PwC believes the FASB should only make targeted enhancements to its existing standards.
PwC supports a converged standard. In the absence of a converged standard, we would support making targeted changes to current US GAAP.
The FASB and IASB issued exposure drafts related to insurance contracts that may change the accounting by non-insurers that sell fixed-fee service contracts.
The FASB and IASB issued exposure drafts that would fundamentally change the accounting by insurers and other entities that issue contracts with insurance risk.