This podcast looks at the LDTI challenges specifically facing CFOs and their teams and how finance can approach compliance in a way that drives additional business benefits.
LDTI is FASB’s update to Topic 944 and impacts insurance entities that issue long-duration contracts. It is viewed as the biggest overhaul in FASB accounting in several decades. For many insurers, the core requirements of LDTI will highlight the lack of investment in and flexibility of finance systems that have been in place over the last few decades.
While many of the standard changes apply to the actuarial systems and models there are some significant complexities that CFOs need to pay attention to or risk the inability to generate the required disclosure reports or stay competitive in an increasingly digital world.