Are Insurance Companies Ready for the New Loss Disclosure Requirements?
This article reminds private insurance companies that they soon will need to comply with the new accounting standard that requires additional disclosures about losses on short-duration contracts. It explains the reasons behind the new standard and explores just what the standard requires in terms of information. The article uses the financial statements of public insurance companies already subject to the requirements to shed light on how private companies can best comply. It concludes with advice on the steps private insurers should take now to position themselves for successful compliance.