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Information system for insurers needs reform, says studyPosted On Mon, January 11, 2010
PricewaterhouseCoopers has released a new report calling for "substantial" changes for clearer insurance financial reporting in an attempt to improve the industry's practices.
In the study released on Monday, titled Making Sense of the Numbers, interviews with 43 insurance industry analysts turned up "widespread dissatisfaction" with the current model of the reporting framework that was currently in place.
Because of that, the report found there was an "inadequate disclosure" of information for balance sheets and income and cash flow statements, among other things. Three-quarters of those interviewed felt the insurance industry deserved its own model of reporting.
All-in-all, the current reporting system was found to be the most dissatisfactory for those working in the life insurance industry.
"We believe insurers need a new and improved approach to financial reporting applied consistently around the world that meets the challenges facing such a diverse and complex industry, as well as the needs of their stakeholders," said Donald Doran, a partner at PricewaterhouseCoopers' insurance practice.
It added that the International Accounting Standards Board and the Financial Accounting Standards Board were looking to develop a reporting system that would overhaul the current industry standard.
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