Furthermore, policyholders must disclose relevant changes in circumstances that may impact their coverage, such as alterations in property conditions or significant changes in risk profile. Failure to report these changes may lead to complications in future claims or even potential policy cancellations. GAAP guidance, which can be adopted, adopted with modification, or rejected for statutory accounting.

Careers & Culture

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Policyholder surplus is not fungible; in other words it is not transferable from one segment of the industry as a result of improved underwriting or investment performance to another. A large increase in surplus for auto insurers in one state, for example, cannot be used by commercial lines companies to provide coverage to corporations against terrorism attacks in another. Policyholder surplus is essentially the amount of money remaining after an insurer’s liabilities are subtracted from its assets. Policyholder surplus is a financial cushion that protects a company’s policyholders in the event of unexpected or contra asset account catastrophic losses. In other industries it is known as “net worth” or “owners equity.” It is a measure of underwriting capacity because it reflects the financial resources (capital) that stand behind every policy written by the insurer.

Statutory Accounting Updates and Resources

Our SIU team audits your current processes to find vulnerabilities and address them Accounts Receivable Outsourcing before they become liabilities. This foresight reduces the likelihood of errors that could jeopardize your standing with regulators. Receive the latest financial reporting and accounting updates with our newsletters and more delivered to your inbox. KPMG’s multi-disciplinary approach and deep, practical industry knowledge help clients meet challenges and respond to opportunities. Integrated Thinking and Integrated Reporting aren’t just buzzwords; they’re the toolkit insurers and reinsurers need to impress stakeholders and keep up with the times. Imagine a world where reports are not just compliance documents but powerful narratives showcasing how insurers are surfing through mega-trends and meeting investor expectations.

Understanding Statutory Reporting Obligations: A Comprehensive Guide

A well-structured statutory reporting framework is essential for maintaining regulatory compliance and protecting your reputation. Partner with GGS’s SIU for dedicated support, streamlined documentation, and fraud prevention expertise—so you can stay focused on core business objectives. Insurance companies should implement regular training sessions and workshops to educate employees about these obligations. This proactive approach equips staff with the necessary knowledge, empowering them to handle reporting requirements efficiently. Regular updates on compliance-related matters also contribute to maintaining alignment with statutory standards. Lastly, as regulatory environments continue to shift, insurance companies will need to remain agile and responsive to new statutory reporting obligations.

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• Unearned premium reserves represent the premiums paid for coverage that has not yet been used because the policy has not expired.
• Please be aware that this might heavily reduce the functionality and appearance of our site.
• Financial reporting requirements dictate that insurance entities must regularly disclose their financial position, including assets, liabilities, and overall performance metrics.
• We report on actions and discussions about ongoing projects on conference calls and at the NAIC 2022 Fall meeting.
• Ultimately, the consequences of noncompliance with statutory reporting obligations extend far beyond immediate penalties, affecting an organization’s overall viability in a competitive market.
• This heightened oversight helps maintain compliance, safeguards your reputation, and supports a seamless experience for both carriers and policyholders.

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It is important to prioritize the desired outcomes of implementing new technology and build a roadmap for implementation, innovation, and improvement. This can include creating a flowchart to map the current process, identify risks, and highlight opportunities for improvement. By adopting new technology and transforming how they work, insurance companies can become more efficient at statutory reporting. Gain Compliance maintains the industry’s best resource library for insurance statutory financial reporting teams. Learn annual statement preparation, accounting guidance, tax compliance and statutory accounting theory from insurance accounting and reporting experts. We report on actions and discussions on conference calls and at the NAIC 2025 Spring meeting.

• This financial reporting helps regulators assess the economic health and risk exposure of these companies, ensuring they can meet their future obligations to policyholders.
• Insurance companies are mandated to provide detailed financial reports, including balance sheets and profit-and-loss statements.
• Utilizing digital platforms for real-time data sharing and reporting simplifies the compliance process while reducing errors.
• Insurance companies reporting to the Securities and Exchange Commission must maintain and report another set of figures that meet GAAP standards.
• The landscape of statutory reporting obligations is significantly influenced by various industry regulations that govern the insurance sector.
• Regulatory bodies, such as the Financial Services Authority (FSA) or state insurance departments, set the standards and guidelines insurers must follow to maintain operational integrity.

By combining proactive planning with meticulous record-keeping, you gain valuable insights into potential fraud risks, regulatory gaps, and areas where processes can be made more efficient. This heightened oversight helps maintain compliance, safeguards your reputation, and supports a seamless experience for both carriers and policyholders. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. We summarize new and revised statutory accounting standards for 2024 and 2025 financial reporting by insurers. Adhering to statutory reporting obligations is essential for maintaining compliance within the insurance industry.

These requirements not only statutory reporting safeguard regulatory integrity but also foster trust among stakeholders and clients. Utilizing digital platforms for real-time data sharing and reporting simplifies the compliance process while reducing errors. This integration of technology ensures that statutory reporting obligations are met with accuracy and timeliness, ultimately promoting a culture of accountability within the organization. Insurance companies must stay informed about changes in laws and regulations impacting their statutory reporting obligations. Failure to comply with these regulations can lead to severe legal repercussions, financial penalties, and damage to an insurer’s reputation.