Insurance CFOs Expect Global Standards: Tillinghast

66% believe fair value is likely to become the accepted insurance industry standard in their country, regardless of whether a global standard is adopted. All other respondents expect the accepted standard to include some aspects of fair value but not necessarily include it in full.

Tillinghast notes that neither U.S. GAAP (generally accepted accounting principles) nor traditional statutory financial reporting focus on the creation of long-term value. For insurers, that is a significant limitation of these traditional accounting approaches.

The survey found nearly three-quarters of insurance company respondents used more than one financial reporting measure to evaluate internal performance, and 41% used three or more measures.