Insurance statutory reporting – September 2017

KPMG summarizes new and revised statutory accounting standards for 2017 and 2018 financial reporting by insurance companies. This follows the discussions and new guidance adopted by the NAIC at its 2017 Summer Meeting.

Applicability

NAIC 2017 Summer Meeting

• All insurance companies

Relevant dates

Effective immediately

Key impacts

Effective for 2017 reporting includes:

• SSAP No. 2 reclassified money market mutual funds to cash equivalents and required them to be reported at fair value
• SSAP No. 103R added enhanced disclosure for repurchase and reverse‑repurchase agreements
• SSAP No. 35R allowed expected renewals of short‑term contracts for long‑term care assessments to be considered in determining the premium tax credits and policy surcharge assets recognized when accruing guaranty and fund liability assessments, also allowed the discounting of guaranty fund assessments from insolvencies of insurers that wrote long‑term care contracts
• SSAP Nos. 55 and 65 added disclosures about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. Disclosures from ASU 2015‑09, Disclosures about Short‑Duration Contracts, not already addressed elsewhere in statutory reporting were rejected
• SSAP No. 26R removed Securities Valuation Office (SVO) designated bond Exchange Traded Funds (ETFs) from the definition of a bond and provided separate accounting guidance for the use of systematic value for these instruments

Report contents

• Overview of new statutory guidance
• 2017 reporting
• 2018 reporting and later

Related content

• Issues & Trends: Insurance: NAIC 2017 Summer Meeting