NU Online News Service, Nov. 19, 3:05 p.m. — New York
The capital markets, top-level regulatory changes and the International Accounting Standards Commission, London, could shake up the world’s life insurance industry over the next decade, according to an informal survey of life executives who attended a global leadership conference here.
The American Council of Life Insurers, Washington, the organization that sponsored the conference, conducted the survey Monday.
When the ACLI asked the executives how the role of reinsurers, primary carriers and capital markets players would change over the next 10 years, 10% said there would be little or no change, and 21% said reinsurers would be extremely involved. But 69% said the capital markets would be very involved.
Many attendees are also expecting to see sweeping regulatory changes.
The ACLI asked the executives about “regulatory modernization,” which it defined to include harmonization of European Union member country insurance rules in Europe and the introduction of optional federal insurance regulation in the United States.
Eighty-three percent said European harmonization and optional federal regulation in the United States would be significant, very significant or extremely significant.
But the executives were also expecting influential changes to come out of the IASC, an independent, privately funded group that sets international accounting standards.
When the ACLI asked how accounting changes now being developed by the IASC would affect the life insurance business, 94% said the changes would be significant, very significant or extremely significant.