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.
Learn how new FASB guidance is affecting financial services companies.
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.
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.
Sophisticated rating capabilities are rapidly becoming the new normal for P&C carriers. Today’s rating solutions provide advanced usage-based models and other analytics that can help carriers thrive in a market being transformed by telematics and new pricing strategies. But many carriers have stumbled on the path to modernization. We explore the most common challenges, and discuss four steps carriers are taking to make the most of their rating modernizations.
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.
The FASB and the IASB issued a revised exposure draft on leases. Although the tax law regarding the treatment of leasing transactions remains unchanged, taxpayers should consider how the Exposure Draft will impact the computation of federal and state taxable income and deferred income tax assets and liabilities associated with their leases.