LDTI is the most significant change in decades to the existing accounting requirements under US Generally Accepted Accounting Principles (USGAAP) for long duration contracts that are non-cancellable or guaranteed renewable contracts such as life insurance, disability income, long-term care, and annuities.
The ultimate objectives of this accounting standard change are to:
- Provide a standardized framework allowing for a better comparison of risk across insurers
- Improve the financial reporting of long-duration insurance contracts through improved information regarding the amount, timing and uncertainty of cash flows
- Aid investors with improved information and disclosures which help to better understand the financial performance and risk of an insurance company
Read more in https://www.datavirtualizationblog.com. Originally published on March 10, 2022.
