With the general globalization of business, there has been increased pressure to bring the US insurance regulatory environment more in a line with international practices. However, survey results indicate that a surprising number of participants expressed a lack of concern. Even among financial executives and survey participants representing large companies, 40% either hadnât given it much thought or didnât expect changes to impact them directly.
âItâs true that some regulations affect only companies that are international or publicly held,â said Connie Jasper Woodroof, StoneRiver Liaison to the NAIC. âBut if the industry moves to adopt International Financial Reporting Standards (IFRS) the changes will most certainly affect every US company regardless of size or ownership.â
Survey participants also weighed in on the future of statutory reporting. Participants saw little need for change, with 61 percent in favor of retaining the current system. About 33 percent felt the industry should switch to US GAAP, and 6 percent thought the best solution was to produce one statement for regulators and a different one for non-regulatory use.
The survey also collected opinions on the value of Supervisory Colleges to be used by the NAIC, implementation of the Reinsurance Regulatory Modernization Act, and changes in SOX requirements.