The new credit impairment model’s impact on insurance companies
In this short audiocast, Assurance Partners Jim Richardson and John Sproull discuss the potentially serious impact of the Financial Accounting Standards Board credit losses standard on insurers, specifically reinsurance recoverables. The focus of the new accounting standard known as ASC 326-20 is on the expected losses due to credit risk of the reinsurer. Insurers will need to develop processes and controls to determine the valuation methodologies most appropriate for them and to ensure information gathered for disclosures is complete, accurate and presented correctly.
RSM has a companion podcast that provides a robust discussion of the standard’s impact on Held-To-Maturity and Available-For-Sale Securities. These topics are not covered in this audiocast. You will also find in-depth whitepapers and other material on the credit losses standard on our website.