Principles

News

GNAIE Participates in Worldwide Discussion; Supports Hub Global Insurance Group Proposal for Insurance Contracts Accounting Standards

Since October 2010, several insurance companies and trade associations from around the world have discussed how we could best support the work of the IASB and the FASB in the development of a single high-quality robust accounting standard for insurance contracts. Over the years, because the industry has traditionally been governed by local regulation, it historically never had a standard method of pulling together disparate views from different geographical locations. The leadership of several major international companies, national and regional trade associations from Asia, Europe, and North and South America met and decided to attempt to prepare a proposal for the Boards' consideration that would have broad industry support. We call ourselves the Hub Global Insurance Group with the idea we would serve as an effective center for inputting a common set of comments to the Boards without preventing individual companies and trade associations from making their own comments.
 

Hub Global Insurance Group Technical Papers

Solvency II Update
A discussion of Solvency II with Douglas Barnert, Executive Director of GNAIE, explaining where we are and where we are going.  Additional commentary by Jerry de St. Paer, Executive Chair of GNAIE, Helmut Perlet of Allianz and Karel van Hulle of the European Commission.

NAIC Begins International Solvency Initiative

The International Insurance Relations Committee of the NAIC announced the beginning of a major initiative to consider the link between U.S. and global insurance solvency standards. The focus will be on: capital requirements, international accounting, group supervision, valuation issues in insurance, and reinsurance. It will be done in cooperation with Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and the European Commission. The NAIC will also look at the impact of Solvency II on insurers and the possible trade implications of the treatment of US insurers and reinsurers under Solvency II. The Financial Condition (E) Committee was also charged to analyze other foreign supervisory initiatives and international accounting standards and to identify and prioritize areas to be considered and the resources needed to do so. No timetable was set for the initiative, which still needs further detailed development. The current efforts towards Principles-Based Reserving and Reinsurance were seen as being a part of the Modernization Initiative.

IASB Hears Options for Insurance Contracts Measurement Basis

The International Accounting Standards Board (IASB) heard an Education Session for staff 15 October regarding candidate Measurement Bases for the Exposure Draft on IFRS 4, Insurance Contracts. There were five options presented in the session: Exit Value as presented in the Discussion Paper of last year; Estimate plus a margin ³for bearing risk²; Estimate plus a margin ³for bearing risk² plus a margin to premium received; Estimate plus a margin to premium received; and, Unearned Premium Reserve (UPR). The discussion by board members included a surprising amount of interest in UPR, questions as to the meaning of the margin in the second and third candidates, concerns over the distinction between market consistent and entity specific estimates and expenses, and questions as to whether the candidates do or need to adhere to the framework and the IAS 37 proposals.

Further information may be found at: IASB Meeting 15 October 2008