One of the most significant challenges for the IAIS has been the lack of a consistent basis of accounting applied across jurisdictions.
For the first time since we began publishing this report, we are finally close to having an international financial reporting standard (IFRS) for insurance contracts that will require consistent accounting, providing the ability to analyze results more meaningfully across entities and jurisdictions. The standard will be one of the most complex issued by the IASB and its implementation will not be straightforward, particularly for those insurers that issue long-duration insurance contracts
The impact of accounting changes is the fourth chapter of Evolving Insurance Risk and Regulation, and provides a general overview of the forthcoming IFRS and outlines the key aspects of the standard. We also provide our perspectives regarding the efforts to create a globally consistent accounting framework for insurance contracts and discuss how this could in the future interact with the IAIS’s work.
This chapter is just one of a series on Evolving regulation. Click on the promo box below to read more.
Chapter 1: International developments dominate regulatory change
Chapter 2: Conduct Risk: Increasing regulatory focus to align product, customer and value
Chapter 3: Regional regulatory developments
Chapter 4: The impact of accounting changes on regulation
Chapter 5: Impacts of emerging risks on the global insurance industry
Chapter 6: Global tax risks bring increased challenges for the insurance industry