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KPMG's Insurance Group – Recent Publications – April 2014 

At KPMG, we are dedicated to providing our clients with insights on today's critical business issues. To help keep you up to date, we're pleased to share with you recent studies, white papers, articles, and multimedia content published by KPMG.

 

SPECIAL ALERT - KEY INSURANCE ACCOUNTING DEVELOPMENTS

 

During April, the IASB continued its redeliberations on the June 2013 re-exposure draft of Insurance Contracts:

 

  • Presenting insurance contract revenue - The IASB reaffirmed that insurance contract revenue should be presented in profit and loss, as proposed in the re-exposure draft, and that the determination of insurance contract revenue should be consistent with commonly understood notions of revenue. It appears that the IASB is sticking to the proposals in the re-exposure draft, with some wording clarifications.
  • Project plan for non-targeted issues - The re-exposure draft was issued with requests for comments limited to a handful of specific issues, but a number of other key issues have been raised during stakeholder consultations and the IASB's redeliberation process. In the April IASB meetings, the following issues were agreed as the subjects of consideration at future meetings:
    • Scope of fixed-fee service contracts
    • Guidance on significant insurance risk
    • Portfolio definition and unit of account
    • Discount rate for long-term contracts and unobservable market data
    • Asymmetrical treatment of reinsurance contracts
    • Recognition of contracts acquired through portfolio transfer or business combination
    • Allocation pattern for the contractual service margin

 

Many of these issues will be of interest to Canadian insurers - of particular interest to Canadian life insurers will the consideration of the discount rate for long-term contracts and unobservable market data.

 

The IASB continues to make important progress in resolving issues raised in the consultation process. There is more to come, including redeliberating the proposals on "mirroring" and the "non-targeted issues" summarized above. For more details, watch for the next edition of IFRS - Insurance Newsletter, which will be available for download by May 5. We will keep you posted.

Publications

 

Publication thumbnail The Valued Insurer: Milk, eggs and life policy? Insurers bag grocery aisle sales

Erik Bleekrode, Partner, KPMG in Brazil, observes that while insurance being sold through grocery store chains could be slow to expand, some insurers see this as an opportunity to increase their brand recognition and trust with consumers.
Publication thumbnail Trends shaping the future insurance M&A landscape

As insurers seek to secure profitable growth, enter new markets and rationalize non-core operations, mergers and acquisitions (M&A) are an increasingly important element of the overall strategy.
Publication thumbnail Illuminate Edition 2 - UK Insurance Regulatory Newsletter

This edition examines the challenges UK insurers currently face with developing their own risk and solvency assessments (ORSAs) and how they are leveraging this work to feed into strategic decision making in the business. We consider the impact on business models, firm culture and conduct risk frameworks in the wholesale general insurance market as the UK's Financial Conduct Authority (FCA) begins to contemplate conduct risk outside the narrower confines of retail insurance customers.
Publication thumbnail Revelation of Chinese insurance ownership rules will encourage domestic consolidation and create opportunities for foreign insurers

In response to China's decision to relax mergers and acquisitions rules for the insurance industry, KPMG predicts a focus on domestic consolidation and rationalization within the market.

Insurance Newsletter

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Insurance

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