Adoption of ASU 2018-12: Lessons Learned

This podcast summarizes lessons learned and challenges faced by public insurers during the adoption and implementation of ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts – (LDTI). The updates from LDTI are aimed at making improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. LDTI was effective for SEC filers, except smaller reporting companies for annual periods beginning after December 15, 2022. All other companies are required to adopt in annual periods beginning after December 15, 2024. Therefore, SEC filers (excluding smaller reporting companies) were required to adopt LDTI during the first quarter ending March 31, 2023. We conducted a survey including public companies and the responses were utilized to create this podcast summarizing survey results of lessons learned and challenges experienced in LDTI adoption, understanding that these may evolve as implementation continues through 2023. In this podcast, Erica Stein, Accounting Advisory Services Managing Director for KPMG LLP (KPMG), and Emily Cassidy, Actuarial Managing Director, and Accounting Change Co-lead for KPMG LLP, summarize lessons learned and challenges faced by insurers during LDTI implementation, including impacts to:

• Financial Reporting Close
• Data
• Management Reporting
• Internal Controls
• Tips for implementation