A new standard for insurance contracts is an opportunity to create more consistent and comparable reporting among insurers and to show the value of the insurance business to investors. The development of a comprehensive standard is essential because the current standard IFRS 4 that was intended to be in effect for a very short period does not provide the level of transparency and comparability needed by the users of financial statements.
In June 2013 the International Accounting Standards Board (‘IASB’) issued a revised Exposure Draft asking for comments on the five key areas that had changed from its 2010 Exposure Draft on the accounting for insurance contracts. The Financial Accounting Standards Board in the United States of America (‘FASB’) issued its first Exposure Draft setting out a comprehensive set of questions regarding its proposed changes to US GAAP for insurance contracts. This paper outlines our response to the IASB Exposure Draft, as well as summarising our views provided to the FASB.