Throughout the publication, we:
- Present a high level guide to the key accounting changes including, the measurement model, volatility, financial instruments accounting and asset-liability management.
- Consider the potential changes to systems and processes, such as changes to modeling and administration systems, as well as systems used to collect and aggregate data for disclosure.
- Outline the people and change impacts. Not only will there need to be increased resources to manage the change, but also the talent that insurers need after the transition may differ from those required today.
- Discuss the broader business impacts and why the changes may affect the types of products that an insurer sells, the investments that it holds, executive compensation arrangements, and how insurers communicate to the market.
- Address how an insurer brings everything together through a coordinated approach to program management. We consider what insurers should be doing now ahead of a final standard.