Tag Archives: Henny Verheugen

Insurance contract accounting update

Progress continues to be made by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) toward the next exposure draft of an accounting standard for insurance contracts. In addition, the boards are moving closer to further changes to the accounting for the assets backing insurance contracts. However, convergence between the FASB and IASB appears to be limited, both for the insurance contract project and more generally.

This white paper provides an update on recent activity on these topics.

Aggregation of risks and allocation of capital

Risk assessment and risk management are critical to survival in today’s business climate, and the accurate calculation of economic capital is more important now than ever before. An effective economic capital management framework also plays a crucial role in product pricing, capital allocation and project financing, performance management, and financial reporting.

A recent Milliman white paper examines various techniques for the aggregation and allocation of capital.