Daily Insurance Industry News
Daily Insurance Industry News
Thursday 22nd of March 2018
November 25, 2009

Shoddy reporting leaves insurers undervalued

by Gill Montia

Story link: Shoddy reporting leaves insurers undervalued

A new report from PricewaterhouseCoopers (PWC) claims: “Insurance analysts across the world believe that a lack of quality and consistency in current insurance reporting is increasingly leading to the under-valuation of a number of the world’s leading insurance companies”.

The study, entitled “Making sense of the numbers” has been compiled from interviews with over 40 investment professionals across Europe, the US, Asia and Australia.

It reveals “widespread dissatisfaction” with financial reporting in the insurance sector, and respondents were keen for the Accounting Standards Board and the Financial Accounting Standards Board to come up with a “new and improved” reporting framework, without delay.

Furthermore, almost 90% of participants in the study felt that insurance was distinctive enough to deserve its own reporting model and 56% were in favour a separate approach for life and non-life business.

PWC global insurance leader, Ian Dilks, says: “Feedback from global insurance analysts is clear; they believe the current reporting situation is harming the insurance industry … the desire for a swift solution is especially strong among life insurance analysts using IFRS (International Financial Reporting Standards).”

He adds: “Consensus is rooted in a desire for reporting to reflect the economic reality of an insurer’s business model.”


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