WASHINGTON, D.C., February 19, 2014 - Phillip Carson, associate general counsel and director of financial regulatory policy for the American Insurance Association (AIA), issued a statement responding to the Financial Accounting Standard Board`s (FASB) recommendations issued today for property-casualty insurers. AIA represents domestic and foreign-based property-casualty insurers that write insurance in the U.S. and around the globe. During the past year the FASB has been working to develop an insurance Accounting Standards Update (ASU) and began its re-deliberations today.
Mr. Carson`s statement follows:
"AIA commends the FASB for its decision today to only seek targeted improvements in the existing financial reporting model for short duration contracts. Rather than switching to a new model that our members believe would have been unsuitable for property-casualty contracts and that would be costly to implement without an offsetting benefit, the FASB has today indicated a desire to only make improvements to the disclosures associated with the financial statements of insurance products.
"As indicated in AIA`s October 2013 comment letter, we disagree with the proposed changes to the insurance ASU because they would not have improved U.S. GAAP. However, in the interest of providing better information to the financial statement users, we believe the FASB`s decision to consider making improvements in disclosures is a step in the right direction. This approach addresses users` concerns for better information, while maintaining a transparent accounting framework that better reflects the economic reality of the property-casualty insurance business.
"AIA is committed to working with the FASB and its staff in achieving high-quality accounting standards, and we look forward to providing further assistance to the FASB as it continues its re-deliberations of the insurance contracts proposal."
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Source: American Insurance Association via GlobeNewswire