South Africa

Details

  • Industry: Financial Services, Insurance
  • Type: Business and industry issue
  • Date: 2012/02/09

New World for Insurance: Preparedness and readiness survey 

The multiple challenges global insurers face today are well documented. We surveyed a number of insurers from around the world to see if future accounting changes (IASB and FASB draft comprehensive insurance contracts standards or 'Phase II') is still a priority to global insurers. Some of the results of the survey were striking, so we have created a short summary of the results.

Some of the key findings from the survey are:
 

  • 86% of respondents indicated they have started work to prepare for Phase II, with all but two starting internal technical training. 
  • 21% of respondents had already committed a budget for Phase II activities.
  • Most respondents believe the final standard will eventually emerge.
  • Almost half are frustrated in their attempts to link reporting change with changes in risk and capital management, in particular because of the divergence with the timeline for Solvency II.
  • Approximately half of the respondents have not yet linked consideration of the Boards’ financial instruments proposals into an integrated project plan with Phase II. Given insurers’ concerns about increased volatility of earnings and reported balance sheet strength, we believe that an integrated approach will become increasingly important.

 

This publication is part of our New World for Insurance series of publications, which discusses and highlights important issues for insurers relating to the forthcoming financial reporting changes impacting the sector. While timetables for the IASB and FASB draft insurance contract standards have been delayed, this survey highlights that these changes are still top of mind for many global insurers.