Fair Value of P&C Liabilities: Practical Implications

Fair Value of P&C Liabilities: Practical Implications

The Casualty Actuarial Society provided funding for the Tillinghast business of Towers Perrin to undertake research that analyzed the potential impact on the U.S. property and casualty insurance industry of converting from GAAP to fair value financial reporting, an ongoing initiative of the International Accounting Standards Board and the Financial Accounting Standards Board.

This book examines the impact of this accounting change on a typical U.S. P&C insurer and identifies the practical issues associated with measuring P&C insurance liabilities on a fair value basis. The final product is a report that helps all parties evaluate the extent to which fair value accounting meets its intended objectives of greater transparency, reliability and relevance than is achieved under current U.S. GAAP accounting.

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