FASB's Proposal to Impact Accounting of Insurers, Comp Liabilities

By David Dankwa, Senior ReporterWorkers’ compensation carriers, along with nearly all insurance companies, will be affected by the Financial Accounting Standards Board’s proposal to change the accounting rules for insurance contracts, especially how insurance liabilities are recorded and reported.Fundamentally, the FASB would require a more current measure of insurance contracts, including the use of frequently updated assumptions and discounting. For insurers of property, liability and short-term health contracts, for instance, the FASB is proposing a premium allocation approach, ...