IASB support development for global insurance standard

A report issued by Ernst and Young has shown that overall the insurance industry and its constituents have given the International Accounting Standards Board (IASB) strong support for the development of a high-quality global insurance standard, with many referring to it as much needed. The report, prepared for the benefit of a consortium of the world’s most influential insurance trade bodies, summarizes the comment letters posted to the IASB’s website in response to its Discussion Paper (DP), Preliminary Views on Insurance Contracts, and shows some differences of opinion on how the standard should be drafted and implemented, often depending on geography, regulatory environment or industry sector.

James Dean, practice leader for Ernst and Young’s Global Insurance Centre and one of the leaders of the review team, commented: “Whatever final insurance standard the IASB develops will result in a fundamental change in the finance and actuarial functions of many insurance companies. Understanding the impact on systems, data, pricing and capital management will be a major challenge. Insurers should start now to examine how this will affect their financial systems and statements. The impact will