KPMG welcomes the progress towards implementing a more common framework for insurance reporting. The proposed standards will be, without question, the biggest ever financial reporting change for the insurance industry. Are you ready?
“The proposed standards will have a defining impact on what insurers report, how they report it and how they ultimately present their business to the outside world.”
Danny Clark, Global Insurance Accounting Change Leader
Derived from significant collaboration between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) the new standards for insurance contracts will improve the comparability of financial reporting among insurers globally.
In June 2013, the Boards published exposure drafts (EDs) on accounting for insurance contracts, and while much of the feedback received through previous outreach activities had been addressed there are still a number of understandable concerns being voiced within the comment letters.
In 2014, we believe the focus needs to shift from debating the “perfect solution” to addressing practical considerations and dealing with unintended consequences. Insurers and other entities issuing insurance contracts should begin to understand the potential impacts on accounting and reporting, systems, talent and on the business. Bringing these elements together in a coordinated approach will be critical to ensure efficiencies are gained.
2014 saw another year of unyielding regulatory change. This report explores how these changes are impacting insurers and insurance markets.