Insurance accounting change risk and control considerations

US GAAP long-duration targeted improvements

Laura Gray

Laura Gray

Principal, Actuarial Network Leader, KPMG US

+1 404-222-3388

Jason Freund

Jason Freund

Partner, Internal Audit & Enterprise Risk, KPMG US

+1 973-876-0006

The US GAAP Long-Duration Targeted Improvements (“LDTI”) effective date of January 1, 2023 is rapidly approaching. Insurers are at various stages of implementation for this robust insurance accounting change. Driven by the need for compliance and desire for operational excellence, companies are transforming by reimagining their processes, leveraging technology enablers, redefining roles and responsibilities, and enhancing risk management, governance, and controls.

Any major accounting policy change brings overarching impacts across the organization. Companies that proactively include risk and control elements in its LDTI implementation benefit from improving outcomes, enhancing investment returns, identifying / mitigating risk indicators, and reflecting relevant changes in the ICOFR programs. Various stakeholders including Finance, Risk, MRM, SOX and Internal Audit, have vested interests in implementing a robust risk and control framework. Companies that coordinate and collaborate with their internal audit groups and SOX programs benefit from unbiased perspectives, continuous feedback loops, and insights on risk and controls across various elements of the transformation program and business as usual (“BAU”) processes.

KPMG’s response focuses complementing and supplementing clients with wide range of skills that cover all aspects of accounting change programs. Our multifaceted framework encapsulates our experience in implementing accounting change programs and brings forward our deep experience and learnings in accounting, actuarial, technology, people, risk, data and governance.

Read our publication to learn more about –

  • Benefits of considering risk and control elements in LDTI implementation
  • Components and benefits of the KPMG Accounting Change Risk and Control Framework
  • How KPMG can help