12 Days of SSAP – SSAP No. 69 – Cash Flow

SSAP No. 69 – Statement of Cash Flows was revised to adopt ASU 2016-18 to reduce the difference between statutory and US GAAP on cash flow classifications. In the revision, restricted cash and cash equivalents are no longer reported as…

12 Days of SSAP -SSAP No. 35R Guaranty Fund and Other Assessments

Issue Paper No. 143R—Guaranty Fund Assessments: Revisions document substantive changes adopted to SSAP No. 35R—Guaranty Fund and Other Assessments related to assessments for insolvencies of entities that wrote long-term care insurance. The revisions allow expected renewals …

12 Days of SSAP – Changes to Bond ETFs

SSAP No. 26R, Bonds, was revised to incorporate bond exchange traded funds. Effective December 31, 2017, each insurance company must make a one-time election to choose to record bond ETFs at fair value or use systematic value. If fair value is elected, the investments will be recorded at market value immediately. If systematic value is elected, insurers will use their existing method…

12 Days of SSAP – Equity Method Revisions

On the second day of SSAP JLK Rosenberger told to me – Equity Method Revisions. SSAP No. 30, 48 & 97 were revised to allow for changing to the equity method to be applied prospectively, as of the date the investment qualifies for equity method accounting

12 Days of SSAP – Market Mutual Funds Revisions

As the holidays approach, JLK Rosenberger is taking a new perspective on a holiday classic – the Twelve Days of Christmas. Rather than filling your head with turtle doves and gold rings, we are going to instead focus on the latest changes to SSAP and how they will impact your insurance company in 2018 and beyond.

InsurTech Trends in 2017 & Beyond

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.

“It’s Not You, It’s Me” (aka Commutation)

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

Short Duration Contract Enhanced Disclosure Examples

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.

Is Blockchain the Next Arsenal for Insurance Companies?

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…

Study Reveals Impact of InsurTech on Insurance Industry

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…