The Tax Cuts and Jobs Act was signed into law in December. Tax reform will lead to either changes in projected profitability, changes in product design or pricing, or both. In this analysis, Milliman actuaries measure the impact of the tax code changes on a range of different insurance product types.
The Financial Accounting Standards Board (FASB) has proposed significant changes to accounting standards for long duration insurance contracts to address several stakeholder concerns. In this report, Milliman consultants discuss the impact of the FASB’s proposed changes on earnings and equity for several illustrative product types. They also examine the industry’s preparedness to adopt the new guidance.