IASB-FASB Insurance Contracts Project

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 International Accounting Standards Board (IASB) is working alongside the US Financial Accounting Standards Board (FASB) to develop a harmonized IFRS for insurance contracts, which is scheduled to be issued in 2011. However, a number of fundamental issues are still being debated and the current views of the IASB and FASB differ, which may affect key areas such as the approach to contract measurement. Proposals are being discussed and revised at an accelerating pace in the lead up to the planned publication of an Exposure Draft and beginning of final consultations in April 2010. For PwC updates and analysis please see below.

Reference materials