Details

Service: Audit, Accounting Advisory Services, International Financial Reporting Standards (IFRS)
Industry: Financial Services, Insurance
Type: Business and industry issue
Date: 22/03/2011

The New World for Insurance

These publications follow the development of the insurance contract standard and the impact to the industry and investors.

The New World for Insurance: Business perspectives on Phase II

The New World for Insurance: Business perspectives on Phase II, is based on discussions with key global insurance companies about the business issues for the insurance industry in transitioning to Phase II of the effort to move to a global insurance accounting standard.

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Key insights

To reduce volatility in reported results and day one losses, some insurers may consider changes to their current product offerings, moving out of longer term products with embedded guarantees towards products in which more investment risk is borne by policyholders.
As a result of Phase II, insurers are assessing the impact of the proposed future reporting requirements and how these proposals may affect capital and reporting financial performance.
Restructuring of the technology landscape is expected to be complex and costly. Many insurers currently do not have the system capabilities to capture information that will be required under Phase II.
Phase II will place significant demands on skilled actuarial and finance resources. Gaps are likely to be addressed by hiring additional resources, outsourcing to third parties, training and redeploying skilled resources to focus on Phase II.

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