Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • July 2012
07

Convergence call for insurance accounting standards

Open-access content 16th July 2012

Insurers across the globe have called for a single accounting framework to enable increased transparency and more effective company comparisons.

2

A survey of insurance finance executives conducted by business advisory firm Deloitte found that nearly half (47%) want harmonisation of the two main accounting regimes. This would mean a convergence of International Financial Reporting Standards (IFRS) with US Generally Accepted Accounting Principles (US GAAP).

Francesco Nagari, Deloitte's global IFRS insurance leader, said that a single set of accounting standards would provide consistency in terms of company reporting.

He added: 'The new rules will level the playing field for investors who would be able to compare insurers globally and with other companies in different sectors. Today's insurance reporting is fragmented and creates a barrier for general investors to consider insurance shares.'

Accounting convergence is hampered, however, by the fact that a complete set of IFRS rules for insurance liabilities does not yet exist, while reform of US GAAP has been awaited for some time.

Proposals to rewrite the accounting standards used by insurers for liabilities and investments are being finalised jointly by the International Accounting Standards Board and the US Financial Accounting Standards Board. But they have struggled to reach an agreement and the timetable has slipped.

More than half the survey respondents rated the uncertainty around the timeframe for implementation as their biggest concern. Specifically, 51% were worried by delays over IFRS 4 (Phase II) for insurance contracts and 52% highlighted issues over the timing of IFRS 9 for financial instruments.

Many insurers (56%) said they would wait until the standards were finalised before starting projects to implement the new rules.

'The extended uncertainty surrounding the completion of a converged insurance project has hampered insurers' desire to prepare for this major implementation challenge,' Mr Nagari said.

This article appeared in our July 2012 issue of The Actuary.
Click here to view this issue
Filed in:
07
Topics:
General Insurance
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Pricing Actuary (Marine)

London, England
£60000 - £80000 per annum
Reference
119007

Actuarial Manager - Reserving & Capital

England, London
£80000 - £110000 per annum
Reference
119006

Capital Actuarial Analyst

London (Central)
Up to £45000.00 per annum
Reference
119005
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200