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Insurance – Certain Taxation and Accounting Aspects “Unfortunately your Insurance Policy does not cover anesthesia, so we Are going to have to use low.

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Presentation on theme: "Insurance – Certain Taxation and Accounting Aspects “Unfortunately your Insurance Policy does not cover anesthesia, so we Are going to have to use low."— Presentation transcript:

1 Insurance – Certain Taxation and Accounting Aspects “Unfortunately your Insurance Policy does not cover anesthesia, so we Are going to have to use low budget procedure to put you out”.

2 Synopsis of the Presentation PART - I o Provisions in Income Tax Act, 1961 dealing with proceeds received from LIP. o Relevance of Amendments made by Finance Act, 2003. o Proposals under the DTC dealing with Life Insurance o Other sections dealing with Insurance under the current act PART – II o Life Insurance – Broad Scope of accounting as defined under IFRS. o Categorisation of Investments o Relevance of the standard o Disclosure requirements

3 S. 10(10D) of the ITA contains provisions relating to exemption of any amount received under life insurance policy. Prior to 2003 the provision was as under:- Any sum received under a life insurance policy, including the sum allocatedby way of bonus on such policy other than any sum received under subsection(3) of section 80DDA or under a Keyman insurance policy.

4 As can be seen, any amount received under the life insurance policy, were exempt. With the relaxation of licensing policy of the Government of India, private sector was also permitted to operate therein. With large numbers of companies were permitted to carry business of life insurance; the competition is bound to be fierce. In order to capturemarket, and lure the high net-worth individuals (HNI), insurance products were structured leveraging the provisions of S. 10(10D). The insurance policies structured were becoming more of financial products and less of insurance as such.

5 The development came to the notice of the Government. The Finance Bill 2003, with effect from assessment year 2004-05, replaced the erstwhile S. 10(10D) with a totally new one and made certain amendments in S. 88 i.e. relating to deduction from gross total income.

6 Newly inserted section 10(10D) which is applicable today reads as follow: (10D) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than— any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA; or any sum received under a Keyman insurance policy; or any sum received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured:

7 Provided that the provisions of this sub-clause shall not apply to any sum received on the death of a person: Provided further that for the purpose of calculating the actual capital sum assured under this sub-clause, effect shall be given to the Explanation to sub-section (2A) of section 88.

8 Proviso – In case of death of a person - exemption to continue… Thus following continued to enjoy the exemption :- a. Life Insurance policies which were issued before 1-4-2003 irrespective of the amount of the premium payable with respect to the capital sum assured. b. Policies wherein the premium payable was less than 20.00% of the capital sum assured.

9 Justification for the amendments? The insurance policies with high premium and minimum risk cover are similar to deposits or bonds. With a view to ensure that such insurance policies are treated at par with other investment schemes, it is proposed to rationalise the tax concessions available to such policies. The objectives of S. 10(10D) were made known to the tax payers i.e. exemption is available for insurance and not earning interest or capital appreciation.

10 Further deduction from income is presently available under Chapter VI 80C. In computing the total income of an assessee, (individual or a Hindu undivided family), there shall be deducted, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees. (i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);

11 (3) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an insurance policy other than a contract for a deferred annuity as is not in excess of twenty per cent of the actual capital sum assured. Explanation.In calculating any such actual capital sum assured, no account shall be taken (i) of the value of any premiums agreed to be returned, or (ii) of any benefit by way of bonus or otherwise over and above the sum actually assured.

12 Persons on whose behalf payments can be made…….. 4) The persons referred to in sub-section (2) shall be the following, namely: (i) in the case of an individual, the individual, the wife or husband and any child of such individual, and (ii) in the case of a Hindu undivided family, any member thereof;

13 (5) Where, in any previous year, an assessee:- (i) terminates his contract of insurance by notice to that effect or where the contract ceases to be in force by reason of failure to pay any premium, by not reviving contract of insurance, (a) in case of any single premium policy, within two years after the date of commencement of insurance; or (b) in any other case, before premiums have been paid for two years; or (ii) terminates his participation in any unit-linked insurance plan by notice to that effect or by reason of failure to pay any contribution, before contributions in respect of such participation have been paid for five years;

14 (a) no deduction shall be allowed to the assessee with reference to any of the sums, paid in such previous year; and (b) the aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.

15 (8) In this section, (ii) contribution to any fund shall not include any sums in repayment of loan; (iii) insurance shall include:- (a) a policy of insurance on the life of an individual spouse child of such individual member of a Hindu undivided family (b) a policy of insurance for the benefit of a minor with the object of enabling the minor, after he has attained majority to secure insurance on his own life by adopting the policy and on his being alive on a date (after such adoption) specified in the policy in this behalf;

16 An accountant, a lawyer, and an actuary are walking down the street when they come upon a man who has just accidently dropped a number of coins out of his pocket onto the sidewalk. The accountant glances around at the coins, totals their value, and advises the man on how much he lost. The lawyer ignores the coins and starts searching the sidewalk for dollar bills. And the actuary uses the total value of the lost coins to project what's left in the guy's pocket. SMILE ………

17 Proposals under DTC: S. 56(2)(f) of DTC provides for inclusion of the entire amount received under the head “Income for Residuary Sources” (IRS). The section reads as follow: (f) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy; However, S. 57 providing for deduction from IRS includes a clause permitting deduction of certain type of amount in this respect. Sub-clause (3) reads as follow:

18 (3) The amount of deduction referred to in clause (b) of sub-section (1) shall be the following - (a) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, if - (i) the premium payable for any of the years during the term of the policy does not exceed five per cent of the actual capital sum assured; and (ii) the sum is received only upon completion of the original period of contract of the insurance or upon the death of the insured;

19 A typical nature of the insurance policy is that they are of longer duration, at times, running into 20 or more years. Therefore, there will be cases wherein the provisions of DTC will be applicable to the policies taken prior to 1-4-2003 as well. Let us examine various dimensions

20 First……. First dimension is the time frame during which the policies were taken. We have three scenarios viz. (i) policies taken prior to 1-4-2003, (ii) policies taken between 1-4-2003 and 31-3-2011; and (iii) policies taken after 1-4-2011.

21 Second ….. Second dimension is with respect to premium payable and sum assured. There are three cases viz. (i) policies where the premium is equal to or less than 5.00% of the sum assured (ii) policies where the premium is equal more than 5.00% but less than 20.00% of the sum assured ; and (iii) policies where the premium is equal to or less than 5.00% of the sum assured and issued after 1-4-2011 i.e. under DTC

22 Third …. The third dimension is with reference to the circumstances under which the amount of life insurance policies is received. Both ITA and DTC, provides for certain exemptions. The three cases covered from examination are as follow: (i) policy amount received upon completion of the original period of contract (ii) policy amount received upon the death of the insured; and (iii) Pre-mature Withdrawal

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24 Synopsis of the Proposed EET Regime :- Maturity Proceeds of a policy shall be exempt only if the premium does not exceed 5% of Capital sum assured. Even when 20% criteria was introduced it was policies taken after 1-4-2003.No similar provisions in DTC. Thus all policies covered as of now. Further irrespective of the fact whether any deductions have been claimed, the proceeds would be made taxable. Even capital contribution shall be charged Thus all existing ULIP’s, Money back & Gauranteed Return plans of insurance will take a hit. Even a loan received by the policy holder against the value of his policy or any surrender value received for a policy will also get taxed on income.

25 Despite all this we feel the provisions were not brought as it is, but to solve a lot of problems, what could those be:- “The Economic Times” of 21st June, 2009. The I-T department is baffled by the new trend of huge amounts of cash being used to buy financial products which they suspect is black money. Tax officials have investigated a number of cases in which investors have bought insurance policies by paying cash up to Rs 1 crore, forcing the department to re-examine many assessees with income of up to Rs 5 crore per annum, an official in Central Board of Direct Taxes (CBDT), who did not wish his name to be disclosed, said.

26 The department is now investigating a case of a husband and wife duo in one of the metro regions using cash to buy an LIC policy worth Rs 1.1 crore. Similarly, it’s also examining two cases in which insurance products worth Rs 44 lakh and Rs 38 lakh were bought using cash in Karnataka, the official said. The I-T department normally investigates most of the returns filed by those earning above Rs 1 crore annually. However, several cases in the Rs 1-5 crore annual earnings bracket escape scrutiny.

27 High Yield Returns? Even in the case of high-premium policies, the objective was to get tax free income rather than insurance. Provisions regarding premium permitted being less than 20.00% of the sum assured are in the statute since 1-4-2003. As we all know, the Assessing Officers have never looked into it seriously. Any amount shown as received under a life insurance policy is considered as exempt by default. It is forgotten that the provision of S. 10(10D) are with the riders.

28 Relevance of 5.00% / 20.00% For a layman, all these may sound confusing. Why should the Government lay down the limit at 20.00% or at 5.00%? Why not any other figures? We have seen the reasons for laying down the limit of 20.00% of the capital sum assured. Although, not so stated specifically in the Finance Bill 2003 or even in DTC, the intention is to exempt the amount received under the insurance policy, and not any other amount. Except in the case of Term Insurance plan, when a person makes payment of insurance premium it consists of two parts viz. cost of insurance and investment with the insurance company.

29 For e.g. the rate of premium is at Rs. 6.77 per Rs. 1,000 of sum assured. This works out to approximately 0.7% of the sum assured. Thus, keeping margin of around 4.93 % for with – profit policies, wherein some amount is also returned by the insurance company to the policy holders, the bench-mark of 5.00% must have been arrived at. Whether it is sufficient enough to cover majority of the cases of low income group is a matter of debate. The only question that one finds difficult to digest is climb-down by the Government from 20.00% to 5.00% of the sum assured. In all one can say that the idea is to promote pure term assurance plan and the policies wherein very low rate of return is assured by the insurance company. For rest of the policies, are proposed to be termed as financial asset and tax the amount received as income.

30 Let us take the case of a person who has taken policy of 15 years duration and premium is more than 5.00% of the sum assured prior to 1-4-2003. Since at that time such provisions were not there he will be in serious problem as the entire amount received will be taxable. In the case of policies taken during the period 1-4-2003 to 31-3-2011, and having rate of premium more than 5.00% but less than 20.00% of the capital sum assured, will also be facing problems. These are the cases wherein the taxpayers have operated within the declared policy and the statutory provisions prevailing at the relevant point of time. There can, certainly no element of equity in putting them to hardship. One should not shed tears for those who have defied the provisions of the ITA as prevailing at the relevant point of time. For example, those who have gone for the policies wherein the rate of premium is more than 20.00% for the capital sum assured have to blame themselves for their ignorance of law and greed. They do not have any ground to complain.

31 What is the way out? Blanket exemption is certainly out of question as it will give undue advantage to those who have placed their money for laundering. It will also not be fair to salaried and middle class tax payers who are required to pay tax even on interest income earned of Rs. 100. Certainly there cannot be case for providing HNI an opportunity for earning tax free income. 1 A way out can be to modify the provisions in the following way. 2 Firstly, the proposed provisions of DTC should be applicable only for those policies which have been taken after 1-8-2009. 3 Secondly, as far as policies prior to the said period are concerned, policies issued before 1-4-2003 should be made totally exempt. In the case of policies issued after 1-4-2003 till 31-3-2011, exemption be granted for the cases wherein the premium paid is less than 20.00% of the sum assured. Clauses in this respect should be with sun-set period of, say, 15 to 20 years. This will address to the demand of large number of ordinary policy holders who have relied on the policy of the Government.

32 Which types of policies DTC proposes to exempt? A question may arise in the mind of a common man as to which type of policy he should opt for? The message conveyed is clear. The people should go for the policies wherein the element of insurance is high as compared to financial investment. For better return on investment, one will have to look at the financial markets and various products made available thereat

33 Options for the Policy-holders A time has come for all of us to take out old policy papers and examine its terms and conditions. At the time of buying the insurance plan we generally do not bother about these issues. However, the time has come to review the whole issue a fresh and take long term view of the situation emerging. What should the policy-holders do? Should they go for pre-mature payment for whatever surrender value is available? Or should they continue with the policies and pay the tax in future? It is difficult to generalize, for solution to these questions depend upon one’s set of circumstances.

34 For example, those who have invested for laundering unaccounted money may find that, if the money is withdrawn at this stage even after incurring losses, it will pose another problem. The debate on this issue has made the tax authorities at lower level enlightened about the provisions under the ITA. Any receipt of money under the insurance policy will prompt them to invoke the provisions of S. 10(10D). Not only that, since the time for re-opening the cases has not gone too far, it may prompt them to invoke the relevant provisions for source of investment. In the case of assessees who have opted for it purely for high rate of return i.e. wherein the rate of premium is more than 20.00% of the capital sum assured, may have to work out the cost-benefit analysis. Of course, the danger of paying tax on premium paid and additional amount received, if any, will always remain.

35 What's the difference between an insurance company actuary and a mafia actuary? Answer: An insurance company actuary can tell you how many people will die this year, a mafia actuary can name them.

36 For all those who have gone purely for insurance cover and premium paid is within the limit laid down, there is no cause for worry.

37 Conclusion: On thing that can be said about the DTC proposal is that there is no question of giving blanket exemption to amount received under insurance plan forever. And certainly the DTC cannot be a party to the unaccounted money launderers nor can it hold the brief for HNI. Why should one shed tears for such individuals? However, as explained above, in the process of conversion to new system, there are genuine cases which have got trapped for no fault of their own. Their grievances certainly need to be addressed to.

38 Other Provisions dealing with Insurance, not being dealt in detail:- Section 44 Insurance business. 44. Notwithstanding anything to the contrary contained in the provisions of this Act relating to the computation of income chargeable under the head “Interest on securities”, “Income from house property”, “Capital gains” or “Income from other sources”, or in section 199 or in sections 28 to 29[43B], the profits and gains of any business of insurance, including any such business carried on by a mutual insurance company or by a co- operative society, shall be computed in accordance with the rules contained in the First Schedule.section 199sections 2829 First Schedule

39 Other deductions. 36. (1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28 :-section 28 (i) the amount of any premium paid in respect of insurance against risk of damage or destruction of stocks or stores used for the purposes of the business or profession; [(ia) the amount of any premium paid by a federal milk co-operative society to effect or to keep in force an insurance on the life of the cattle owned by a member of a co-operative society, being a primary society engaged in supplying milk raised by its members to such federal milk co-operative society;]

40 [(ib) the amount of any premium [paid by any mode of payment other than cash] by the assessee as an employer to effect or to keep in force an insurance on the health of his employees under a scheme framed in this behalf by :- (A) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government; or (B) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);]

41 END OF PART - I Thanks for a patient hearing, We shall now move onto Part 2

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43 Accounting under IFRS Insurance Industry

44 IFRS 4 on Insurancee Contracts is intended to cover not only the insurance companies as we know in the legal framework, but every entity which issues insurance contract.

45 Overview of IFRS 4 Defines an insurance contract and distinguishes from an investment contract Requires IAS 39 to be applied to some pure investment contracts (but not to contracts with discretionary participation features) Requires some embedded derivatives and some deposit components to be separated from insurance contracts Requires a minimum liability adequacy test to be applied based on current estimates of future cash flows IAS 39 applies to investments – no separate rules for insurers

46 Out of scope (as specifically covered by other standard) :- o Employee benefit plans o Product Warranties and gaurantees issued by manufacturer, dealer or retailer. o Contractul rights which are contingent with regard to royalties / licenses. o Financial Gaurantees

47 Agenda Product classification Accounting for investments

48 Agenda Product classification Accounting for investments

49 Need for product classification IFRS 4: Only standard on insurance contracts Applies only to contracts that meet the definition of an insurance contract o Investment contracts not meeting this definition covered under IAS 39 on `Financial Instruments: Recognition and Measurement’ Classification of products into insurance products or otherwise: a prerequisite under IFRS

50 Definition of an insurance contract Definition refers to traditional features of insurance contracts, distinguishing them from financial contracts Definition: “a contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder” Insurance risk is defined as a transferred risk other than financial risk

51 #1: Significant insurance risk Quantitative guidance for assessing significance of insurance risk not provided Contract is an insurance contract if it results in a significant additional payment o If in a contract, death benefit exceeds the amount payable on survival, the contract is insurance contract unless the additional benefit is insignificant Significance is interpreted in relation to an individual contract; except in a portfolio of homogenous contracts

52 Some contracts do not transfer any insurance risk to the issuer at inception, although they do transfer insurance risk at a later time o Account for as investment contract until transfer of the insurance risk o Once the insurance risk is transferred account for as insurance contract Example: a zero death benefit pension product An insurance contract remains as an insurance contract until all rights and obligations are extinguished or expire #1: Significant insurance risk (Contd.)

53 Uncertainty of the insured event can result from uncertainty over: o the occurrence of the event; o the timing of the occurrence of the event; or o the magnitude of the effect, if the event occurs Insured event must be explicitly or implicitly described #2: Uncertain future event

54 #3: Transferred risks Refers to risks which were pre existing for the policyholder at inception of the contract o Loss of future earnings for the insured, when the contract is terminated by the insured event, is not insurance risk as the economic loss for the insured is not a transferred risk

55 #4: Financial risks Include the risk of a possible change in variables such as o interest rate o financial instrument price o commodity price o foreign exchange rate Financial risk products are not presently sold by Life Insurance Companies in India

56 Take a break … A lawyer, an accountant and an actuary are discussing the merits of having a mistress or a wife. The lawyer reckons it is better having a mistress, because the wife can take everything if you should come to a divorce. The accountant reckons it is definitely better having a wife, from a taxation perspective. The actuary reckons it is better having both, because when you are not with the wife, she would think that you are with the mistress, and when you are not with the mistress, the mistress thinks you are with the wife, and that way, you can spend more time at the office.

57 Definition of an insurance contract “a contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder” o Insurance risk is defined as a transferred risk other than financial risk

58 Protection vs investment - the spectrum of life products Term assurance Protection products Savings / investment products Permanent health insurance Whole life cover Endowments Pensions and annuities Maximum investment Insurance contract (traditional IAS 39

59 Accounting of Insurance contracts Contract components Significant insurance risk ? Insurance contract IFRS 4 Unbundling ? Financial risk ? Investment contract ??? Yes Account as per IAS 39: Fair value or amortised cost No Yes

60 Unbundling of an insurance contract Can the insurer measure the deposit component separately without considering the insurance component ? The insurer’s accounting policies require it to recognize all obligations and rights arising from the deposit component Unbundling prohibited Unbundling permitted but not required Unbundling required No Yes

61 Indicative contract classification: Indian context Product portfolioClassification Unit Linked lifeInsurance contracts as IRDA mandates a minimum death cover of 5 times the premium Unit Linked pensionInsurance or Investment contracts depending on sum assured opted Participating – non linked life & endowment products Insurance or Investment contracts depending on sum assured opted Participating – endowment pensionInsurance or Investment contracts depending on sum assured opted Non participating: Term (retail & group), Mortgage & Credit term and Health products Insurance contracts Group Superannuation, Gratuity & Leave encashment Investment contracts

62 To unbundle or not? o Transparency? o Impact on top line No quantitative guidance on identification of significant insurance risk o Open to individual judgment in identifying significance of insurance risk o Internationally contracts where the risk cover exceeds the premium by over 5 -10% are classified as Insurance contracts Implications for Insurance Company

63 Agenda Product classification Accounting for Investments

64 Investments Linked Non Linked & Shareholders Investment accounting – Indian context Valued at fair value; unrealised gain/loss is taken to Revenue account Equity & Mutual Fund Investment Other Investments including debt instruments Valued at fair value; Unrealised gain/ loss taken to Balance Sheet Valued at amortised cost using simple interest rate method

65 Recognition and measurement of Investments under IFRS governed by IAS 39 - `Financial Instruments: Recognition and Measurement’ IAS 39 prescribes rules for: o Recognition (and de-recognition) of financial instruments o Measurement of various types of financial instruments in the financial statements, including derivative financial instruments o Hedge accounting Investment accounting – under IFRS

66 Recognition: only when entity becomes party to the contractual provisions of the instrument De-recognition: is appropriate if either one of these two criteria is met: o Contractual rights to the cash flows of the financial asset have expired, or o The financial asset has been transferred and the transfer qualifies for de-recognition In Indian GAAP, presently there are no explicit guidelines on the timing of recognition & de-recognition of investment Recognition and De- recognition

67 Lets laugh a bit ………..

68 IAS 39/IFRS 4 can disrupt the balance between assets & liabilities Balance sheet insurance company Held-to-maturity = amortised cost Traditional insurance contracts = net-premium method at prudent discount rate ≌ amortised cost Loans and receivables = amortised cost Unit-linked insurance contracts = market value of linked investments Available-for-sale = fair value Fair value through P&L = fair value

69 Fair value through profit and loss Held-to-maturity assets (HTM) Loans and receivables Available for sale financial assets (AFS) I. Classification requirements: a. Held for trading (acquired for the purpose of short-term profit taking) a. Fixed or determinable payments and fixed maturity with intention to hold till maturity a. Financial assets with fixed or determinable payments Financial assets not classified in any of the other categories b. Upon initial recognition, designated as fair value through profit or loss b. If the portfolio has been tainted, then financial assets cannot be classified as HTM b. Not quoted in an active market II. Initial measurement (at the time of purchase): Fair valueFair value + acquisition cost Measurement of financial instruments

70 Measurement of financial instruments (Contd..) III. Subsequent measurement: Fair valueAt amortised cost using effective interest rate method Fair value IV. Recognition of gains / losses through change in fair value: Recognised in profit or loss account Not applicableTo be recognised in the equity account (i.e. the reserves and not through profit or loss account) Fair value through profit and loss Held-to-maturity assets Loans and receivables Available for sale financial assets

71 V. Impairment loss: Not applicable as any gains/losses are already recognised in the profit or loss account Amount of loss: difference between the assets carrying amount and the present value of estimated future cash flows Amount of loss: the difference between the acquisition cost and the current fair value Recognition: loss shall be recognised in the profit or loss account and the carrying value of the financial asset shall be accordingly reduced Recognition: the cumulative loss previously recognised shall be reduced from the equity (reserves) account and shall be recognised in profit or loss account Fair value through profit and loss Held-to-maturity assets Loans and receivables Available for sale financial assets Measurement of financial instruments (Contd..)

72 Other aspects on measurement: o Amortisation basis  IFRS prescribes Effective interest method  Indian GAAP prescribes current simple interest method o Transaction costs (related to acquisition / issuance of investment)  IAS 39 prescribes the cost to be charged off to the Revenue / Profit & Loss Account  Indian GAAP prescribes capitalisation of the cost with the cost of investment Measurement of financial instruments (Contd..)

73 An investment cannot be classified into or out of fair value through profit or loss category Reclassification between AFS & HTM categories is possible o Except if HTM portfolio is tainted o If significant amount is reclassified under AFS from HTM; the remaining HTM investment has also to be reclassified into AFS Re-classification of financial instruments

74 Alignment between IRDA regulations and requirements of IAS 39 Classification of investments in light of lack of experience Volatility in the revenue account if one classifies Investments as Fair value through Profit & Loss Decision to classify investments either at fund, segment or at each security level o This could impact allocation of a single security across various funds having different classification categories Implications for Insurance Company

75 Stringent tainting provisions: o Companies would be forced to classify long term securities as other than HTM category HTM securities will now be valued using effective interest method as against presently used simple interest method, requiring necessary system changes System readiness in respect of accounting, valuation and providing other disclosure related information Implications for Insurance Company

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