Towers Perrin Survey Shows Improved Preparedness for Principles-Based Regulation and Increased Use of Market- Consistent Reporting

CFOs report far greater understanding of principles-based regulation than they did in 2006 and are making notable progress in preparing for the new regulation, according to the latest survey of Life Insurance CFOs by the Tillinghast insurance consulting practice of Towers Perrin.

While only 8% of CFOs surveyed consider themselves very knowledgeable about principles-based regulation, all of the rest understand at least the basics. Furthermore, 42% say that planning is well under way, and 12% have either largely implemented or are establishing a structure for migrating from a formula-based approach for reserves and capital to a principles-based approach. By contrast, last year’s survey found that nearly half of respondents (44%) knew very little or were not at all familiar with the regulations, and only 17% had any planning under way.

Towers Perrin Survey Shows Improved Preparedness for Principles-Based Regulation and Increased Use of Market-Consistent Reporting
Source: Business Wire