Odomirok.30-Future

Chapter 30 of Odomirok discusses the future of financial reporting & solvency monitoring of insurance companies.

Study Tips

Spend no more than 10 minutes on this reading.

this reading has not been tested on any exam from the year 2012 to Fall 2019 when the exams stopped being published.

reference	part (a)	part (b)	part (c)	part (d)
no prior questions

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The Financial Sector Assessment Program (FSAP) is a periodic peer reivew of financial regulation for G20 countries.

it is benchmarked against IAIS ICPs (IAIS = International Association of Insurance Supervisers, ICPs = Insurance Core Principles)
the U.S. did well historically but may not do well going forward because SAP doesn't reflect the time value of money

IAIS is developing ComFrame (Common Framework) to supervise international insurance groups.

needs a standard method for valuing assets & liabilities
ComFrame proposes IFRS to meet this need
the U.S. method is different from IFRS ==> problem! (U.S. insurers may need to create 2 sets of financial statements.)

The Federal Insurance Office (FIO) was created by the Dodd-Frank Wall Street Reform & Consumer Protection Act of 2010.

studies & collects information on the INSURANCE INDUSTRY & state insurance regulatory systems
drafts federal regulation for the insurance industry

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