NU Online News Service, March 27, 9:31 a.m. – The American Council of Life Insurers, Washington, is teaming up with two other life insurance trade associations to oppose draft international accounting procedures under consideration by the International Accounting Standards Board, London.
Adopting the standards would produce “misleading and deceptively volatile results” that would be damaging to policyholders, life insurance companies and their stockholders, ACLI says in a press release issued today.
In a letter hand-delivered to the accounting board’s meeting in Tokyo last week, ACLI, the German Insurance Association, Berlin, and the Life Insurance Association of Japan, Tokyo, voiced support for the IASB’s objective of improving accounting standards worldwide and of creating international accounting standards for insurance contracts. But the groups urged the board to abandon its accelerated timetable for writing and adopting those standards.
The groups told the board the timetable does not allow for adequate public review and comment or for adequate input by insurance industry experts and their regulators.
“Adopting a standard based on untried theories has the risk of producing unreliable information, not the ideal outcome of an international standard,” the three groups write in the letter.
ACLI was not immediately available to give details about its objections to the draft standards.