European Insurers and reinsurers have voiced "serious concerns" about the pace of proposed changes to insurance accounting, said a report.
The Comite Europeen des Assurances (CEA), which represents the sector, was commenting on proposals by the International Accounting Standards Board (IASB) for the two-phase overhaul of insurance accounting that will apply to listed companies in the EU.
Between 2005 and 2007, phase one of the proposed changes would allow insurers to use most of their home country's accounting practices. In phase two, from 2007 onwards, the IASB wants insurers to disclose the market value of their assets and liabilities.
The report said many insurers in Europe and the US oppose a "fair value" regime because they do not want the volatility that it might create in their accounts.
The CEA said there was a timing issue with the proposals because phase one of the IASB's draft changes on insurance contracts might require system modifications without the knowledge of what the system requirements for phase two might be.
The final phase one standard is expected to be published in March 2004, with application from 31 December 2005.
But the report revealed that insurers thought the tight time frame might be complicated by further changes due to other accounting changes that the industry would have to implement.
