U.S. insurers should be working to shape and preparing to accommodate new European insurance accounting rules.
Insurance accounting experts made that case in discussions of a recent announcement that the U.S. Securities and Exchange Commission might let foreign companies issue securities in the United States without requiring the companies to reconcile their financial statements with U.S. generally accepted accounting principles.
“This is a wakeup call to insurers,” says Mark Freedman, a principal in the New York office of Ernst & Young. “The industry ought to consider the impact of where the U.S. is headed.”
Comments on the SEC proposal to let foreign issuers follow foreign accounting rules are due Sept. 24.
Both the International Accounting Standards Board, London, and the Financial Accounting Standards Board, Norwalk, Conn, are requesting comments on whether and how they should go about bringing harmony to the world’s insurance accounting rules.