Moody’s Analytics announced the launch of the RiskIntegrity™ for LDTI solution, a tool to help insurance companies implement the Financial Accounting Standards Board’s (FASB) targeted improvements to the accounting for long-duration contracts (LDTI).
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“The FASB’s targeted improvements to long-duration contracts include some fundamental differences in the financial reporting of insurance contracts. Insurers who report under US GAAP will need to address these differences, along with other challenges, to ensure a quality implementation of LDTI”
Designed to address the demanding modeling and accounting requirements of LDTI, this new solution integrates seamlessly with the Moody’s Analytics AXIS™ actuarial modeling system and AXIS GAAP Link products, as well as other actuarial modeling tools and general ledger solutions, to deliver a single platform for actuarial analysis, accounting, and reporting.
Available as a software-as-a-service solution (SaaS), the tool helps bridge the gap between an insurer’s actuarial engine and general ledger, enabling actuarial and finance teams to work collaboratively to help their firms address the changes to accounting for long-duration insurance contracts.
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Accounting teams in particular will benefit from the solution’s subledger, which provides a central data repository where actuarial data and accounting results can be analyzed and reconciled before being sent to a general ledger. The out-of-the-box reports, chart of accounts, and posting logic allow teams to use the software immediately, reducing project implementation timelines. In addition to these preconfigured capabilities, the chart of accounts is designed to easily map against a general ledger’s code block attributes, allowing users to easily streamline, track, and retrieve information.
“The FASB’s targeted improvements to long-duration contracts include some fundamental differences in the financial reporting of insurance contracts. Insurers who report under US GAAP will need to address these differences, along with other challenges, to ensure a quality implementation of LDTI,” said Christophe Burckbuchler, Managing Director at Moody’s Analytics. “The RiskIntegrity for LDTI solution will help insurers tackle these challenges and be well positioned to implement the new standard.”
