Life Insurers Face Another Big, Hairy Accounting Shift

September 17, 2019 by Allison Bell

U.S. life insurers will soon face a big, little-discussed accounting headache: changing the way they handle expected credit losses.

Life insurers will have to estimate the odds that the loans in their investment portfolios will go bad.

Life insurers will also have to estimate the odds that their reinsurance arrangements will go bad.

Accountants from KPMG talked about the cause of the shift — the Financial Accounting Standards Board’s Current Expected Credit Losses (CECL) standard — Wednesday in New York, at a KPMG insurance conference.

Click HERE to read the full story via ThinkAdvisor.

Originally Posted at ThinkAdvisor on September 12, 2019 by Allison Bell.