Insight
The new interest rate environment: Back to normal? – Part 1
We discuss the developments in the interest rate markets over 2022 and how the increases have affected the level of liability discount rates for insurers.
The International Financial Reporting Standard for insurance contracts and US GAAP long-duration contract targeted improvements both require a current estimate of insurance liabilities instead of following a traditional net level premium reserve approach using assumptions locked in at policy issue. However, the source of period-by-period profit, and the resulting profit signatures due to experience or assumption changes, could differ significantly between the two. This briefing note illustrates these potential differences using a traditional level premium endowment contract.
Insight
We discuss the developments in the interest rate markets over 2022 and how the increases have affected the level of liability discount rates for insurers.
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IFRS 17 vs. US GAAP LDTI: Different animals?
This briefing note illustrates potential differences between the International Financial Reporting Standard for insurance contracts and US GAAP long-duration contract targeted improvements using a traditional level premium endowment contract.