Survey of analysts says accounting rules undervalue insurers

Accounting rules undervalue insurers according to 90% of the 40 analysts surveyed by PricewaterhouseCoopers (PWC), the Telegraph reports.

They have called for the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to create a new framework across the global industry.

More than half the analysts wanted accountants to use different rules for life and non-life businesses.

Complete disaster

Using International Financial Reporting Standards (IFRS), one respondent said income statements were a "complete disaster". Segmental reporting was regarded by another as insufficiently detailed for their analysis.

They added that Market Consistent Embedded Value (MCEV), the new European industry measure, was better but not consistently used.

Ian Dilks, global insurance leader at PwC, said: "Feedback from global insurance analysts is clear; they believe the current reporting situation is harming the insurance industry and they are calling for the IASB and the FASB to come to a conclusion, and quickly.