Question
In: Finance
Describe the regulatory and accounting issues involved with insurance-linked securities and insurance derivatives.
Describe the regulatory and accounting issues involved with
insurance-linked securities and insurance derivatives.
Solutions
Expert Solution
ILS (Insurance Linked Securities) are the financial instruments driven by insurance loss events. It is directly linked to a property losses due to NATCAT (Natural Catastrophe ) events. Insurance Derivatives are also similar in nature. It also called as Catastrophe Derivatives/ Industry Loss Warranties.
Major accounting/regulatory issues are:
- These are determined to be insurance must comply with insurance regulations.
- State premium taxes need to be paid.
-However, an organization can deduct these taxes and is not required to record the outstanding losses that are covered by the insurance on the liability section of the balance sheet.
- These products are considered insurance if the payment trigger is a general value rather than based on a firm's actual losses.
- Many uses this to hedge against fixed income assets.
- To match asset/liability duration better.
-To hedge underwriting risk and foreign exchange risk.
jeff jeffy answered 2 years agoRelated Solutions
Describe the regulatory environment for Iinternational business. How is the Securities Act of 1933 related to...
Describe the regulatory environment for Iinternational business.
How is the Securities Act of 1933 related to the IB industry? What
is the Glass-Steagall Act? What is the Securities Exchange Act of
1934? Also, describe two recent developments in securities
regulations and explain the way in which they have impacted the IB
industry.
(a) State any five issues dealt with in the regulatory framework of accounting. (b) Outline any...
(a) State any five issues dealt with in the regulatory
framework of accounting.
(b) Outline any four benefits multinational companies may derive
from global harmonization of accounting standards.
(c) In preparing financial statements, accountants follow certain
fundamental assumptions and policies. List and explain two of these policies and
assumptions under the following:
(i) boundary rules
(ii) measurement rules
(iii) ethical rules
1. Identify and describe several current environmental issues, and describe the federal laws and regulatory agencies...
1. Identify and describe several current environmental issues,
and describe the federal laws and regulatory agencies that exist to
protect the environment. 2. List organizations and global
initiatives that protect the environment. 3. Describe the major
sources of air pollution, and list strategies for minimizing their
effects. 4. Analyze sources of water pollution, and list ways to
protect water quality. 5. Describe the risks of noise pollution and
methods for minimizing it. 6. Describe the elements of the visual
environment...
Define regulatory framework and describe roles of Securities Commission and Bursa Malaysia in regulating corporate governance...
Define regulatory framework and describe roles of Securities
Commission and Bursa Malaysia in regulating corporate governance in
Malaysia.
‘What are the primary accounting issues involved in the establishment of a long-term asset, the depreciation...
‘What are the primary accounting issues involved in the
establishment of a long-term asset, the depreciation of a long-term
asset, and the sale of a long-term asset?
What are the primary accounting issues involved in the establishment of a long-term asset, the depreciation...
What are the primary accounting issues involved in the
establishment of a long-term asset, the depreciation of a long-term
asset, and the sale of a long-term asset?.
5. Describe the relevant statutory, legislative and regulatory requirements for documentation of accounting procedures
5. Describe the relevant statutory, legislative and regulatory
requirements for documentation of accounting procedures
DESCRIBE ACCOUNTING ISSUES FOR REVENUE RECOGNITION AT POINT OF SALE.
DESCRIBE ACCOUNTING ISSUES FOR REVENUE RECOGNITION AT POINT OF
SALE.
1.Describe the various mechanisms involved in the regulation gene transcription. •RNAi •Epigenetics •Regulatory elements can u...
1.Describe the various mechanisms involved in the regulation
gene transcription.
•RNAi
•Epigenetics
•Regulatory elements
can u tell me plzz in brief
Discuss the factors involved in the selection of market securities.
Discuss the factors involved in the selection of market
securities.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
- You must evaluate a proposal to buy a new milling machine. The base price is $175,000,...
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
ADVERTISEMENT