Most insurers are confident about meeting the deadlines to implement the US long duration targeted improvements (LDTI) accounting standard, but there are concerns around data management, resource constraints and coordination across teams.
This is the feedback from the report LDTI: a comprehensive view of implementation at US life insurers, produced by InsuranceERM and sponsored by Moody's Analytics.
According Michael Hughes, a fellow of the Society of Actuaries, one of the biggest challenges has been the need for strong collaboration between the actuarial, finance, accounting and IT functions, as well as across business units, due to the interdependencies and complexities of the new standard.
On a plus side, some participants see LDTI as an opportunity to modernise their systems ahead of the deadlines of 1 January 2023 (for listed entities) and 1 January 2025 (for other entities).
Sarah Williams, deputy chief risk officer at Global Atlantic, says her firm has decided to migrate its actuarial models to a new platform at the same time it started implementing LDTI.
"This migration is enabling us to consolidate our models, streamline the data processing, and implement stronger model governance and controls."
The report features interviews with five insurers as well as comments from actuaries and consultants.