Accounting Group Postpones Major Life Insurer Rule Shift
October 23, 2019 by Allison Bell
The Financial Accounting Standards Board (FASB) has formally agreed to give life insurers more time to cope with new rules that could lead to insurers adding hundreds of millions of dollars in gains and losses to their net results just about every quarter.
FASB announced Friday that it has pushed back the effective dates for new rules for reporting on the value of long-duration insurance contract obligations, such as annuities, long-term care insurance benefits and long-term disability insurance benefits.
Here’s how the Norwalk, Connecticut-based group has changed the effective dates for three groups of insurers:
- For the big public insurers that file regular financial reports with the U.S. Securities and Exchange Commission, the effective date will move to January 2022, from January 2021.
- For smaller public companies, the effective date will move to January 2024, from January 2021.
- For any other entities subject to the rules, the effective date will move to January 2024, from January 2022.