As the leading auditor of insurance companies in the United States of America, we have extensive knowledge of statutory accounting principles and their application. We have dedicated national resources whose sole purposes are to monitor and communicate statutory accounting developments and to serve as consultative resources on emerging statutory accounting issues. We attend the quarterly meetings of the NAIC and participate in various industry working groups that develop statutory accounting principles.
Because of our extensive client base, our engagement teams have experience working with virtually all state insurance departments on financial accounting matters, and we formally and informally share this individual and collective experience within the insurance practice.
We routinely communicate with clients on emerging statutory accounting matters and their implications and release a newsletter each quarter based on the NAIC meetings. We also have assisted clients to address issues raised by NAIC Codification (including providing clients with our RapidSTAT software so they could develop comprehensive documentation relating to their statutory accounting policies). Moreover, we have a strong relationship with state insurance departments, which we believe is critical to understanding and anticipating the unique application of statutory accounting principles.
We also share our thinking on emerging topics from a GAAP and SEC accounting and reporting perspective. As the NAIC is required to review each GAAP pronouncement and consider its applicability for statutory reporting purposes, much of this GAAP guidance ultimately affects statutory accounting.
Last but not least, we have dedicated National Office resources whose sole responsibility is to monitor and communicate statutory accounting developments and serve as consultative resources on emerging statutory accounting issues. Several of these individuals are part of a team that supports our insurance engagements.
Insurance Practice Leader, PwC US
Managing Director, National Professional Services Group, PwC US