The continual development of technology in the business landscape is no surprise. Companies in multiple industries are taking advantage of the opportunity to deliver faster and more convenient service while reducing costs through digital innovation. As discussed in a previous blog post, the insurance industry is now following suit with new innovations designed to optimize the customer experience while finding opportunities for new services and increased revenue.
The early termination of a reinsurance contract is known as commutation. It releases the reinsurer of its present and future obligations under the original reinsurance agreement for a negotiated consideration as a complete and final settlement. Why commute and how … Continued
ASU 2015-09 is about enhanced disclosure, and while it lays out certain requirements for presentation and provides examples of what the disclosure might look like, it also leaves a high degree of discretion to insurers to determine how and what information best meets with the spirit and intent of the standard. By now you know ASU 2015-09 requires disclosure of development data for short duration contracts.
The advancement of technology is progressing at an amazing pace. This is evident through the development of new products such as the self-driving car, drones and the many wearable technology products currently on the market. While these are the products that grab our attention, there are other advancements which have a more lasting impact on…
Technology has impacted virtually every aspect of our lives – both personal and business. Over the last five years there have been seismic changes in how we create, produce, consume and analyze information. The proliferation of mobile phones and other devices such as drones, wearable technology and new apps, have opened a new world of possibilities…
Reinsurance agreements must contain the element of risk transfer where the reinsurer assumes significant insurance risk and may realize a significant loss from the transaction. However, there is an exception to these rules. In the following example, we demonstrate the “substantially all” exception to the essential elements of risk transfer.
Researching accounting literature is never easy, and it often requires reference to multiple sources to find the answer. A good example of this is Accounting for Policy Fees under Statements of Statutory Accounting Principles (SSAPs).
Fronting can be defined as an alternative way of entering markets and growing premium, a valid tool to be used for the benefit of both an insurer who needs the front and an insurer willing to be the front for the right compensation.
May 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-09 “Disclosures about Short Duration Contracts.” The FASB was looking to (1) increase the decision usefulness of the information about an insurance company’s insurance ….
JLK Rosenberger recently presented a tax update at the California Regional IASA conference on December 1, 2016. The slides discuss the potential tax changes under President Trump and a republican congress and how that might impact insurance companies.