ACLI Opposes IASB Mark-To-Market Rule

The groups are especially critical of a “mark-to-market” provision that would press insurers to value insurance contracts at their current market value.

“While ‘mark-to-market’ accounting might have its places, application of such an approach where there are no verifiable market prices lends to situations where entities are free to develop and use valuation models based on their own assumptions and methods,” the three groups argue.

“There is no question about whether a theoretical model could be developed and required for insurance contracts,” the groups add. “The real question is whether doing so would make matters better or worse.”