Insurers are still adapting to the new accounting, financial and reporting standards that took effect in January 2016 as a consequence of the financial and accounting aspects of the Solvency II-type regime.
The initial reports filed for the first quarter of 2016 are still being tested and restated by many insurers, as the models that the regulator provided have undergone additional changes. Further, the Solvency II accounting and reporting standards deviate dramatically from the prior reporting standards, which makes it difficult and impractical for insurers to issue financial statements that can be appropriately compared with similar statements for 2015. In light of this, the National Insurance and Bonding Commission recently issued an amendment to the Sole Regulations on Insurance and Bonding, acknowledging that it is impractical for regulated entities to issue comparative financial statements during 2016.
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