Insurance publications

	Top Insurance Industry issues in 2012: The impact of persistently low interest rates In 2011, life insurers started to feel meaningful effects from the low interest rate environment, including declining sales, revenue, profitability and company valuations. If interest rates continue to stay low - and it appears likely that they will - then life insurers’ financial pain will be broader and deeper. This preview of Top Insurance Industry Issues in 2012 addresses the impact of persistently low interest rates and strategic options for coping with it.

	The Sprint for the Global Footprint: How Insurers can Build a Profitable Growth Strategy through International Expansion Projected slower growth in developed economies is creating a mandate for insurers to expand internationally. However, no one strategy fits all in terms of where, how, and when to expand. In fact, leading insurers have learned that uniform approaches fall short, and that the key to success is making available information actionable.

	Fire, Ready, Aim: Don't Miss the Point of a Policy Administration Transformation The frequency and complexity of changing market dynamics have made a modern and flexible PAS platform a necessity for desired growth and profitability, and most insurance carriers are placing policy administration system (PAS) transformation near the top of their to-do lists. Companies that do not adapt risk losing market share while experiencing continually escalating costs.

	Getting more from your property & casualty actuarial analysis Many companies retain P&C insurance risks, and typically retain the services of a credentialed actuary to assist with various financial analyses of the retained risk. This paper contains questions that a company risk manager should discuss with their actuary.

	Have insurance pool expectations exceeded solvency measures? This paper explores various solvency measures pools use to establish and assess funding level, and also discuss the context in which the specific measures developed. In addition, it addresses alternative strategies and approaches to establish and assess funding levels.

	International comparison of insurance taxation We have the pleasure in presenting the recently updated survey of the accounting and taxation rules that apply to both life and non-life insurance business around the world. The intention of this survey is to present an overview of the situation for seven countries.

	Ready, set, FATCA: How the new rules will affect insurers, and why early action is the best policy PwC has published a new paper for the Insurance industry on FATCA that discusses the technical details of how the FATCA regulations affect the insurance industry, and what insurers can do now to prepare.

	Adoption of SSAP No. 101 This paper discusses the important changes to income tax accounting under statutory accounting principles ("SAP"), including accounting for uncertain tax positions. Although not effective until 2012, companies should quantify the impact of SSAP 101 and plan accordingly.

	Delivering regional insights in insurance taxation: Asia Pacific Insurance Tax News PwC’s Asia Pacific Insurance Tax News offers insights into topical tax issues in the insurance industry in the Asia Pacific region. This issue features an assessment of the implications of FATCA regulations on insurers in the region.

	Summer 2011 NAIC meeting notes This newsletter contains information on activities that occurred in some of the NAIC committees, task forces and working groups that have met since the Spring National Meeting. (Hurricane Irene forced the cancellation of the summer meeting.)

Top Insurance Industry Issues in 2011
Top Insurance Industry Issues in 2011 describes in detail the new and existing challenges the insurance industry is facing in 2011 and the strategies insurers can use to address them.

Continuing Developments in the Taxation of Insurance Companies: A history: 1986-2010
For the past 15 years, "Continuing Developments in the Taxation of Insurance Companies" has provided an overview of developments affecting the taxation of insurance companies. Though cases and rulings increase our knowledge and provide clarity, they often generate as many questions as they answer. In this edition, we have documented the various changes the industry has undergone since 1986.

The Direct Distribution Dilemma
At a time when technology-driven innovations are giving consumers more insights into and control over their purchases, insurers cannot afford to be left behind. Consumers are demanding more choices, competitive prices, better service, and different ways of doing business.

Getting Set for the US ORSA
The NAIC recently described its proposed expectations for the assessment and resulting ORSA filing in its draft ORSA Guidance Manual. This paper explores the Manual's key features and its implications for insurers as they prepare for the expected US ORSA requirement.

Demystifying group supervision
As a result of international scrutiny, there will be significant changes to group supervision in the years to come. This paper explores the changes to group supervision that may have the most impact on insurance groups.

Preparing for the US ORSA: Considerations in advance of the new US insurance regulatory requirement
This paper describes the key steps that insurers can take today to influence the scope of the requirement and ensure a smooth transition to regulatory reporting of ORSAs.

Redefining the customer experience: Mobile telematics and the future of the insurance industry
Recent technological advancements, widespread adoption of smartphones, and the ever-evolving nature of vehicle communications systems represent a unique confluence of trends that present a significant opportunity for insurers. By incorporating mobile telematics into the core business strategy, insurers can fundamentally alter and improve the value proposition for consumers in an unprecedented way.

Bracing for Change: Medical professional liability (MPL) insurance costs at a crossroads
This latest PwC insurance publication says that careful consideration of the impact of these potential changes will better prepare healthcare providers, liability insurers, and medical professionals for changes in MPL insurance costs before they actually occur, and also describes developments and strategies that could potentially limit MPL insurance costs in the long-term.

Overcoming Claims Inadequacies: A Mortality-Based Approach to Reserving for Old Workers’ Compensation Claims
While several recent industry studies have found that workers' compensation reserves are adequate or perhaps only slightly deficient overall, adverse development in older accident years is a continuing problem.

Beyond Financial Reporting: Assessing the Organizational Impact of the IASB and FASB Proposals for Accounting for Insurance Contracts
Recent proposals on accounting for insurance contracts represent a major change in financial reporting for insurance companies. However, the proposals' potential impact extends far beyond just financial reporting. Insurers will need to examine their organization's capabilities, related efforts and projected timeframes to create a framework for management to integrate this proposed comprehensive measurement approach into their respective organizations, as well as to assess the potential impacts on their systems, processes and people.

Managing Risk and Capital Adequacy: The Potential Impact of Solvency II on US Insurers
Increasing US regulatory interest in risk management and risk quantification practices is motivating US insurers look closely at Solvency II. Although not all of them will be directly subject to the new regulatory regime, most of them will feel its impact.

A timely adjustment: Transforming claims operations for measurable, sustainable advantage
Claims is the key control point in managing carrier cost. An effective transformation of the core claims process has the potential to reduce loss and expenses by 5 to 12 percent, which could spell the difference between profit and loss. Leading carriers have already begun to realize the benefits of transforming their claims operations, making transformation a competitive imperative.

A Closer Look at the Dodd-Frank Act's impact on insurance companies
The Dodd-Frank Wall Street Reform and Consumer Protection Act may have a significant effect on insurance companies, including on their regulatory structure and certain parts of their business. Because insurers and industry stakeholders are just beginning to understand the Act's many facets and prepare for its full impact, PwC provides A Closer Look at it.

Tax accounting for insurance companies 2010
The Tax Accounting for insurance companies: A comparison of tax accounting under generally accepted and statutory accounting principles addresses the key provisions of FAS 109 (now ASC 740) and SSAP No. 10R.

The Chinese insurance market: Is this the last, best chance for multinational insurers?
While multinational insurers still face challenges in China, the next five years offer them what is perhaps the last, best chance to build and/or solidify their presence there.

Publication archives

NAIC meeting notes archive
This newsletter contains information on activities that occurred in some of the committees, task forces and working groups that met.
Insurance tax bulletins
One page summaries of insurance tax developments affecting insurance companies and their products.
Top insurance industry issues in 2010
Although the worst of the financial crisis has passed, the insurance industry faced significanjt challenges in 2010. A weak economy that limited growth opportunities which made capital preservation an ongoing priority for many companies.
A Timely Adjustment: Transforming Claims Operations for Measurable, Sustainable Advantage
A struggling economy that softens demand for insurance, an increase fraudulent claims, price competition, and recent collapses in the value of investments have reduced insurance industry margins. Companies operating on multiple legacy platforms must compete with newer carriers with modern, integrated systems.
Tax accounting for insurance companies: A comparison of tax accounting under generally accepted and statutory accounting principles
This edition covers the impact of SSAP No. 10R on statutory tax provisions, the general and expanded deferred tax asset admissibility tests, disclosure requirements, and internal controls as they relate to the tax function.
Making sense of the numbers
PwC interviewed more than 40 investment professionals in 2009 to understand their thoughts on the current state of insurance reporting and its future direction. Findings reveal widespread dissatisfaction with the current state of financial reporting.
FS Viewpoints: A brave new world for insurance companies
The latest in our series on current issues impacting the financial services industry is entitled: Federal oversight and banking regulation - two generational changes to consider
A Closer Look: Impact of the Dodd-Frank legislation on insurance companies
This edition of A Closer Look provides a perspective on the impact that Dodd-Frank may have on insurance companies, including overall regulatory structure and new requirements that apply to portions of certain insurance companies’ business.
Top nine insurance industry issues in 2009
Insurers are faced with the most challenging economic environment in decades. As the economic crisis persists, they are seeking ways to maintain adequate capital, manage risks, retain business and contain costs. 2009 is perhaps the critical year in the current crisis, and how insurers manage uncertainty and change this year likely will determine their long-term success. PwC's report identifies nine significant issues that will help shape the insurance industry in 2009, and describes their implications.
Economic measurement of insurance liabilities
Insurance company financial reporting and performance measurement are going through a significant transformation. Insurers are beginning to look at their business based on what many refer to as the "economic value framework."
The Chinese insurance market
Chinese insurers and regulators are now focusing on stability and improving risk management. Companies that best capture the opportunities of this transitional stage will enjoy significant long-term success in China in the years to come.
Turning risk into reward: Gearing up for a new world order in financial reporting, risk management, and capital management
The paper specifically addresses convergence toward an economic framework for evaluating solvency, reporting earnings, and measuring performance; the competitive impact of Solvency II; and, the complexities of IFRS Phase II.
Does ERM matter? Enterprise risk management in the insurance industry 2008: A global study
Does ERM matter? updates our 2004 survey of ERM in the global insurance industry, measures the progress companies have made with ERM, and describes potential future challenges. The publication combines an in-depth survey of 53 insurers from Asia, Europe and North America with PwC's insights into what makes an effective ERM framework.