North American life insurers face a significant number of financial reporting changes because of recent regulation that is now in effect or is still under review and expected to become effective within the next five years. Respondents to Towers Watson's 32nd Life Insurance CFO Survey report that these changes will require a major evaluation and enhancement of talent, governance and software models. To a lesser extent, products and plan designs will also need to be reassessed.
The complexity and importance of these new reporting requirements will make it necessary for insurers to understand exactly how these changes will alter everything from supplementary reporting to capital financing for products such as UL with secondary guarantees and term insurance. Even if CFOs have key personnel who can follow the intricate details of these regulations and are free to focus on near- and long-term planning for their company's financial functions, that planning will be easier for CFOs if they understand the intricacies of these changes.