CLAIMS CORELEDGER

The operating record for policy, claims, and insurance change.

Entities issuing long-duration insurance contracts within U.S. GAAP scope · U.S. accounting standard update

ASU 2018-12 Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

LDTI changes measurement, assumptions, discount rates, market risk benefits, deferred acquisition costs, and disclosures for long-duration insurance contracts.

Issued accounting standard update with effective-date amendmentsBinding for in-scope U.S. GAAP reporters

What the authority record establishes

LDTI changes measurement, assumptions, discount rates, market risk benefits, deferred acquisition costs, and disclosures for long-duration insurance contracts.

Binding for in-scope U.S. GAAP reporters

The exact official title, issuing body, jurisdiction, version or application record, and linked source define the scope of this page. Readers should not transfer the authority's status to a commercial product or infer transaction-, patient-, system-, site-, or organization-specific applicability from this summary.

Why it matters to this market

Life and annuity administration, actuarial, data, subledger, and reporting programs need controlled assumptions, cohorts, movements, history, reconciliation, and disclosure evidence.

Affected operating stages

  • Contract Administration
  • Assumptions
  • Measurement
  • Market Risk Benefits
  • Deferred Acquisition Cost
  • Disclosure
  • Transition

Capabilities to examine

Insurance Product Configuration And Version Control

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for insurance product configuration and version control.

Policy Administration And Policy Lifecycle Control

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for policy administration and policy lifecycle control.

Premium Billing Invoicing And Receivables

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for premium billing invoicing and receivables.

Payments Disbursements And Reconciliation

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for payments disbursements and reconciliation.

Reserve Exposure And Financial Control

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for reserve exposure and financial control.

Life Annuity And Long-Duration Contract Administration

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for life annuity and long-duration contract administration.

Insurance Data Model Quality And Governance

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for insurance data model quality and governance.

API Event And Ecosystem Integration

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for API event and ecosystem integration.

Operational Financial And Regulatory Reporting

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for operational financial and regulatory reporting.

Audit Trail Reason Code And Decision Reconstruction

Ask how the system or service identifies the controlling source and version, applies customer-specific interpretation, handles exceptions, preserves human judgment, and retains evidence for audit trail reason code and decision reconstruction.

Affected buyer audiences

  • U.S. life and annuity finance
  • actuarial
  • data
  • technology
  • audit

Implementation questions

  • Which entities, products, populations, transactions, systems, sites, or jurisdictions are actually within scope?
  • What is binding, what is guidance, and what is a technical or consensus standard?
  • Which publication, adoption, effective, application, transition, and enforcement dates differ?
  • Who owns legal, clinical, quality, regulatory, policy, or operational interpretation?
  • How will a source revision affect open work and historical decisions?

Interpretation boundary

The publication does not provide U.S. GAAP advice, determine effective dates, measurements, controls, or reporting sufficiency for an entity.