In June 2013, the International Accounting Standards Board (IASB) published a new exposure draft (ED) as part of Phase 2 of the project to develop a comprehensive accounting standard for insurance contracts (IFRS4).
This paper provides a summary on the feedback received by the IASB on the latest ED. Many basic concepts, such as the building block approach and a need to project liabilities stochastically to value options and guarantees, almost certainly will make their way to the final standard. However, there are some issues that were widely criticised by the respondents. For those, IASB may try to adopt a different approach to address the criticism.
A summary of the IASB proposals can be found in our paper, "IFRS Insurance Contract Summary 2013 Exposure Draft” of September 2013.