The International Accounting Standards Board (IASB) is slowly but steadily moving towards the completion of its project to write brand new rules for insurance accounting. This project, known as IFRS 4 Phase II, from the current International Financial Reporting Standard (IFRS) on insurance contracts [IFRS 4, Accounting for Insurance Contracts], is being developed jointly with the US Financial Accounting Standards Board (FASB).

If a converged solution is achieved, the insurance industry will be the first to report profits on the same basis around the world, boosting its chances of attracting investors’ attention and lowering its cost of capital.