The Financial Accounting Standards Board (FASB) issued new guidance on August 15th, that will change how insurers account for long-duration contracts.
The changes are intended to provide users of financial statements with more information about insurance liabilities, including the amount, timing and uncertainty of an insurer’s cash flows related to long-duration contracts.
Insurers will need to change their processes, systems and internal controls to apply the guidance.
You can download the attached for full details, but the key points to know include:
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