2018年-普华永道全球_PwCs_US_GAAP_long_duration_targeted_improvement_survey_2018_23页_3mb

报告摘要

US GAAP Long Duration Targeted Improvement (LDTI) Survey 2018 Summary

Core Content

The 2018 US GAAP Long Duration Targeted Improvement (LDTI) Survey conducted by PwC provides an overview of how life insurers are responding to the proposed changes in US GAAP accounting for long duration contracts, issued by the Financial Accounting Standards Board (FASB) on August 15, 2018. The survey includes responses from 24 life insurers and highlights both the challenges and opportunities associated with implementing these changes.

Key Takeaways

Nearly all firms will adopt the proposed changes, even if they doubt they will achieve FASB's objectives.
The changes will have significant implications for internal operations and external reporting.
Most firms expect significant challenges in meeting the proposed implementation timeline.
A compliance-focused approach is prevalent, with strategic modernization being limited to key areas such as actuarial modeling.
Insurers are advised to leverage the investment required to meet LDTI changes as a catalyst for improving capabilities and insights across the organization.

Survey Overview and Context

The survey was conducted after the June 6 FASB meeting.
87% of respondents use US GAAP as their primary reporting basis.
45% consider economic capital, and 25% report under IFRS and Solvency II.
The survey provides self-reported data, without validation or alteration by PwC.

Business Implications

Over half of insurers do not believe the FASB changes will achieve their stated objectives.
63% plan to use the changes for management reporting, while only 13% will continue with current US GAAP.
23% are considering early adoption, and 9% plan to adopt early.
Over 75% of companies expect strategic changes in areas like 3-year business plans, product design, risk management, and hedging programs.
Over 50% rate the strategic implications as medium or high for business plans, product design, and hedging programs.

Main Challenges

Implementation challenges are widespread, with 59% of companies finding the timeline extremely challenging and 27% at least moderately challenging.
70% of companies expect challenges in actuarial systems and data processes.
80% find it challenging to explain impacts to senior management and the market.
Technical challenges include changes to Market Risk Benefits, disaggregated roll-forwards, and cohort-based Net Premium Reserves.
The least challenging change is the new DAC methodology.

Implementation Plans

75% of companies are adopting a compliance-focused approach, with limited or no enhancements.
55% of companies are looking to modernize through actuarial model enhancements.
60-70% are currently focused on understanding the changes, impact assessment, and roadmap development.
Only 9% have started detailed impact assessments.
50% of companies do not have a roadmap or plan for LDTI implementation.
Only 5% have a detailed roadmap with interim steps defined.
86% of companies plan to mobilize LDTI projects in 2018.
73% plan to complete impact assessments in 2019, leaving little time for implementation and testing.
73% of companies expect to implement LDTI into business-as-usual (BAU) in 2021.
Companies planning to build and perform dry-runs in 2021 are mostly mutual companies with go-live reporting in 2022.
55% of companies have not yet developed budgets for LDTI.
Where budgets are provided, they vary from less than $5 million to over $50 million.
73% have not started detailed budget planning.

Transition of Traditional Insurance

The modified retrospective approach is the default transition method defined by FASB.
However, 67% of companies have not yet decided to adopt this method.
33% have decided to use the modified retrospective approach.

Contacts

Matt Adams – Partner, PwC
Email: matt.adams@pwc.com
Phone: +1 (646) 471-8688
Greg Galeaz – Partner, PwC
Email: gregory.r.galeaz@pwc.com
Phone: +1 (617) 530-6203
Richard de Haan – Principal, PwC
Email: richard.dehaan@pwc.com
Phone: +1 (646) 471-6491
David Honour – Principal, PwC
Email: david.honour@pwc.com
Phone: +1 (646) 471-1696

Thank You

The survey was conducted with the support and participation of the insurance industry, and the findings highlight the significant impact and challenges of implementing the FASB's LDTI requirements.

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