Application & Implications of Fair Value Accounting l: Annuity Business
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Document ID: 2002-743 (previously Report 65)
Published on: 1st July 2002
The ‘fair valuation’ of insurance liabilities will see the insurance industry take a step closer to its investment banking cousins in terms of how it values the financial obligations it makes to its customers. However, whilst the principle of market-consistent valuation is simple, the detail is not. This report is the first in a series that will examine how fair value accounting might be applied to some of the major product offerings of the insurance industry, and the implications this may have. We start with one of the simpler product lines: annuity business.
