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KPMG's Insurance Group – Recent Publications – June 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

 

The IASB’s model for non-participating insurance contracts is now substantially complete, with the Board reaching decisions on the remaining aspects of this part of its project.


In its June meeting, the Board addressed concerns about the practical difficulties in determining discount rates when there is a lack of observable data. Discount rates at long durations typically have little or no observable market data, and simply extrapolating short term variations in the yield curve could produce significant unrealistic volatility. This has been a particular concern for Canada’s life insurers, and it is expected that the Board’s clarifications will be welcomed by many.


The Board also decided on an exception to the subsequent measurement of reinsurance contracts to better reflect their economic relationship with the underlying insurance contracts, and provided clarifications and guidance on the level of aggregation of insurance contracts.


The Board’s focus will now shift to participating contracts. The staff have received directional guidance from the Board in this area, so that they can develop alternatives to be discussed in future meetings. The Board’s outlook continues to be that it will complete its redeliberations of the insurance proposals in 2014 and publish a final standard in the first half of 2015. For more details, please see this month’s IFRS – Insurance Newsletter, which is available for download below. We will keep you posted!

 

Publications

 

IFRS Newsletter

IFRS Newsletter: Insurance – Substantial completion, with participating contracts to be completed


This edition of IFRS Newsletter: Insurance highlights the IASB’s discussion in June 2014 on its insurance contracts project, as briefly summarized in the “Special Alert” at the top of this bulletin.

Canadian Insurance Industry

Canadian Insurance Industry Risks & Opportunities Survey


KPMG in Canada has published the results of its first annual Canadian Insurance Industry Risks & Opportunities Survey. This survey is distinguished by focusing on Canadian insurers, and by considering both the risks they face and the opportunities they see.

Customer Experience Barometer

Customer Experience Barometer


The KPMG Customer Experience Barometer is based on an in-depth survey of 5,000 consumers across five major markets (Australia, China, Germany, the US and the UK) and five key service sectors (Banking, general insurance, life insurance, e-retail and utilities). The KPMG Customer Experience Barometer serves as a tool for service-based organizations to benchmark their customer experience against peers across industry sectors and geographies.

Insurance Newsletter

View previous issues of KPMG's Insurance Group - Recent Publications

Insurance

KPMG's insurance practice in Canada is well placed to help clients successfully navigate challenging times and capitalize on opportunities.