US GAAP Targeted Improvements & Disability Income Insurance
13 November 2019
US GAAP Targeted Improvements & Disability Income Insurance
The changes to the measurement and reporting of long-duration insurance contracts will have a profound impact on the emergence and volatility of earnings under US GAAP. This paper illustrates the potential impacts of Accounting Standards Updates 2018-12, Targeted Improvements for Long-Duration Contracts, relative to current US GAAP accounting with respect to products with long claim periods such as individual disability insurance and highlights some practical implementation challenges.