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Presentation to IASB on CAS-Sponsored Research on
Fair Value of Claim LiabilitiesFair Value research sponsored by CAS and conducted by the Tillinghast business of Towers Perrin and by PricewaterhouseCoopers was presented to the International Accounting Standards Board on February 15, 2005.
Three CAS presenters participated in the presentation. Ralph Blanchard provided overall context and framed the issues; Bob Conger presented key results and implications from the Tillinghast research; Sam Gutterman presented insights and key results of the PricewaterhouseCoopers research; and Ralph Blanchard provided a wrap-up discussion that outlined pros and cons of partial or full implementation of the use of discounting and risk adjustment in the financial reporting of property/casualty claim liabilities. Copies of the presentation slides are available for download below.
As part of its continuing deliberations regarding a new insurance accounting standard, the IASB has arranged for several educational sessions for itself. In January 2005, for example, the IAA was invited to lead a discussion of expected cash flows for non-life claims liabilities (Sam Gutterman made the presentation as chair of the IAA's Committee on Insurance Accounting). And, for its February 15 meeting in London, the IASB invited the CAS to present the Fair Value research that CAS sponsored last year relating to the issues of discounting and risk adjustment. The printed research report had been provided to IASB previously, but the IASB was interested in the opportunity for a live presentation and discussion.
Published Research Report
Fair Value of P&C Liabilities: Practical ImplicationsPresentations to the IASB
Introduction
Tillinghast presentation
PriceWaterhouseCoopers presentation
Conclusion

