A group representing North American property/casualty insurers has answered a call for comments from the International Accounting Standards Board (IASB) regarding how insurance contracts are valued on carriers’ balance sheets.
In an August 19 comment letter to IASB Chairman Sir David Tweedie, the Group of North American Insurance Enterprises (GNAIE) criticized the Premium Allocation Approach proposed last month in the IASB’s Insurance Contracts Exposure Draft. GNAIE says IASB approach is overly complex and fails to account for short-term insurance contracts properly.
"In contrast to the IASB premium allocation approach, GNAIE proposed an Alternative Measurement Paradigm for short-term property/casualty contracts to differentiate those short-term contracts that should qualify for a simplified measurement and reporting approach from those that would be better suited to a building block approach," said Jerry de St. Paer, executive chair of GNAIE in the Comment Letter to the IASB.
Instead, GNAIE recommends an approach based on the use of the existing measurement approach in use for nearly a century for property/casualty insurance contracts in the United States, and favored by the Financial Accounting Standards Board.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access