WASHINGTON–Finite-risk insurance contracts may have played a role in recent accounting frauds, but insurance groups said there is no need for new federal standards.
In interviews representatives of direct property-casualty insurance writers and reinsurers said they will tell the Financial Accounting Standards Board next month that current standards governing finite-risk insurance contracts are appropriate and there is no need for a new standard governing these instruments.
FASB has asked for comments on whether a new standard promoting greater transparency and ease-of-comparison in insurer financial statements is necessary in the wake of several scandals and financial restatements over the last several years stemming from alleged misuse of these instruments, both by insurers directly and in products they sold to their customers.
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