Washington, D.C. (May 25, 2017) — The American Council of Life Insurers (ACLI) congratulates the International Accounting Standards Board (IASB) on its new standard for insurance contracts, International Financial Reporting Standard (IFRS) 17. Twenty years in the making, this standard is intended to provide a consistent accounting model for measuring and reporting financial information about insurance contracts.

The standard requires companies to provide current measurements of future risk-adjusted cash flows for insurance contracts.

“Providing consistent accounting information should improve market analysts’ understanding of the insurance business, which should translate into a lower cost of capital for the industry,” said Mike Monahan, ACLI’s senior director, accounting policy.

ACLI looks forward to working with the IASB’s technical resource group to address questions and issues during the implementation phase. The standard’s effective date is January 1, 2021.

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 290 member companies operating in the United States and abroad. ACLI advocates in state, federal, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing 94 percent of industry assets, 93 percent of life insurance premiums, and 97 percent of annuity considerations in the United States. Learn more at www.acli.com.