Best’s Review: US Life Insurers Face $1 Billion Price Tag for New Global Accounting Standard

OLDWICK, N.J.--()--June’s Best's Review cover story package focuses on emerging global markets and risks for insurers. Five stories cover which countries are emerging growth spots for insurers and how changing regulations are impacting insurers in the United States, India and Brazil.

Also included in the June issue is the poster-sized Best’s Review’s World Catastrophe map, which looks at the largest insured loss events of 2010. The online version features 20 videos that illustrate each of the top 20 events.

One of the cover package features, “Standard Operating Procedure,” reveals how a proposed merger of two accounting sets into one global system has U.S. insurers concerned. The U.S.-based Financial Accounting Standards Board and the London-based International Accounting Standards Board are working toward a unified standard — one that could cost U.S. life insurers more than $1 billion to implement, according to the American Council of Life Insurers. The target date for reaching international standards on insurance contracts has been delayed from a June deadline. And one expert, Jennifer Weiner, insurance project manager at FASB, says “we don't know” if there will be a single standard.

However, the implications for insurers are many, according to A.M. Best Assistant Vice President Steven M. Chirico, who is also a certified public accountant. They include the costs of reconfiguring the chart of accounts, the closing process, retraining staff and purchasing new accounting systems.

To access a listing of Best’s Review’s June stories go to www.bestreview.com.

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June also includes listings of professional designations for insurers and A.M. Best’s annual Corporate Changes.

Best's Review is published by the A.M. Best Co., for insurance professionals, including home office executives, agents, brokers and others affiliated with the industry.

To read these articles and more, subscribe to Best’s Review by visiting our website at www.bestreview.com, calling the A.M. Best customer service department at (908) 439-2200, ext. 5742, or emailing your request to customer_service@ambest.com.

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Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Co.
Lynna Goch, 908-439-2200, ext. 5381
lynna.goch@ambest.com

Contacts

A.M. Best Co.
Lynna Goch, 908-439-2200, ext. 5381
lynna.goch@ambest.com