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Insurance Accounting Change Today 

While the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) continue to deliberate the remaining open topics, the move to a new accounting standard has never been closer. KPMG professionals are working with a number of their firms’ clients to assess their strategies towards Insurance Accounting Change and its impact. We have found that there are alternative approaches that insurers might consider depending on where they are in their planning as illustrated in the spectrum below.

Where does your firm fit across the spectrum? (Hover over each section to learn more)

watch and wait
warming things up
eye to the future
getting started
early mover

Consider the following questions to assess your next steps.

 

  • Are you in a complex global organization or one with multiple lines of business?
  • Is your company undergoing strategic changes, such as M&A activity, which may increase the complexity of legal structures, accounting bases or operating models?
  • Do you see your company as wanting to influence the standard setting process?
  • Are you concerned that your existing financial systems are sub-optimal? Alternatively are you updating your current systems and do you need to consider the future accounting standards in the specification?
  • Do you see significant risk for your organization or expected volatility arising as a result of the new standards – do you need to start managing internal and external stakeholder expectations sooner rather than later?
  • Do you anticipate that the combination of the above factors is likely to cause a large strain on your internal resources, most likely with subsequent skills gaps?

 

By preparing now you will:

 

  • Gain a better understanding of likely volatility, therefore being more prepared to respond to, and mitigate risk.
  • Give meaningful, informed comments and guidance to the board and provide management and stakeholders with enough time to prepare.
  • Gain competitive advantage by taking this opportunity to, examine legacy systems to see if they are sufficient to support future business needs; analyze the finance function and correct system issues and simplify processes and controls; increase transparency.

 

Whether you are a global insurer or have a national focus, KPMG has the expertise to assist you on this journey, contact us today.

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