Regulatory & Accounting Updates Affect Life/Annuity, Health Insurers
March 11, 2020
Four Major Proposed and Pending Changes Aim for Transparency, Clarity and Consumer Protections But May Add Business Complexity and Volatility to Investment Performance, Earnings
HARTFORD, CT – March 11, 2020 – Leading global investment management firm Conning has issued a Viewpoint highlighting the four major proposed and pending regulatory and accounting updates for insurers. The updates will likely impact mainly life/annuity and health insurers, and while the updates aim to improve transparency, clarity and consumer protections they may also add business complexity and raise volatility in investment performance and company earnings.
Conning’s Viewpoint “Four Regulatory & Accounting Updates: What Life/Annuity & Health Insurers Need to Know” reports on four significant updates for insurers: accounting for current expected credit losses (CECL), financial reporting for long-duration contracts, new fiduciary rules, and principles-based reserving (PBR).
“These changes reflect a variety of regulatory and industry concerns, some stemming back to the financial crisis,” said Terence Martin, a director in Conning’s Insurance Research group and head of the life and health insurance industry team. “While we see the potential upside of these good-faith efforts to address the issues, there inevitably is some downside potential any time the rules change given the industry’s complexity.”
The report authors are Martin, Mary Pat Campbell, vice president, and Scott Hawkins, director, all members of Conning’s life and health industry team.
Conning (www.conning.com) is a leading investment management firm with approximately $179 billion in global assets under management as of December 31, 2019.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of December 31, 2019, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, Cathay Securities Investment Trust Co., Ltd. (“SITE”) and Global Evolution Fondsmæglerselskab A/S and its group of companies (the “Global Evolution Companies”). The Global Evolution Companies are affiliates of Conning. SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning controlled entities
# # #
+1 860-299-2278 (direct)
+1 646-502-3534 (direct)
+1 646-502-3559 (direct)