The Study Of The Implementation Of New Accounting Standards In Our Insurance Companies

The Insurance Company is a special company who run risks, the anticipation of Insurance products determines the major liabilities is liability reserve funds, the premium has the dual nature of income and liabilities.The particularity of insurance company management decided the particularity of insurance accounting.Now, China is actively promoting the domestic accounting standards in line with international financial standards. In 2007, the implementation of new accounting standards for insurance fill the gaps of our country's previous insurance accounting system. In 2010, the implementation of The Insurance Accounting Policies developed it. The new standards introduced the concept of insurance risk, the principle of testing major insurance risk, the mandatory requirement of breaking up mixed insurance contract, the fair value measurement and best estimate principle. The implementation of new standards make our country's insurance accounting substantial close to the international accounting, it is a milestone in the history of insurance accounting in our country.In our country, Ping An Insurance Group is the largest comprehensive financial services group, in 2007, it listed in Shanghai and HongKong stock exchange, Ping An Life Insurance Company is China's second largest life insurance companies, the study of Ping An Life Insurance Company can on behalf of the insurance industry in our country. The new standards has a significant effect on insurance industry, especially on life insurance industry. Take Ping An Life Insurance Company for example, under the new standards, accounting of the premium income scale and structure is more reasonable, accounting of the life insurance liability reserve funds is more moderate, released the potential solvency amount, but the new standards didn't have a impact on the embedded value accounting of Ping An Life Insurance Company. New standards of accounting can objectively reflect the operations of insurance companies in China.Insurance Accounting Policies require A shares and H shares listed insurance company adopt new insurance accounting standards, significant differences between A+H shares is no longer exist. But insurance accounting practice in China started late, there are many places need to perfect. The cost treatment of acquisition costs of the insurance policy has have a negative impact on the insurance company' income statement, suggested that the deferred method is adopted. Best estimate principle isn't conducive to insurance regulation, advice to strengthen the insurance company internal and external supervision. The new standards adopted accrual basis can't fundamentally eliminate the premiums receivable, suggest use the Cash accounting to adjust the premium income. The new standards on non-financial information disclosure requirements, Suggestions of mandatory disclosure, of non-financial information requirements. The new standards may cause the risk of accounting mismatch, Suggestions of perfecting the accounting standards for insurance details to avoid accounting mismatch. The improvement of the accounting standards for insurance will be conducive to the sustainable and healthy development of insurance industry in our country.