39 XBRL Insurance Companies Software Tools

8/12/2019 39 XBRL Insurance Companies Software Tools

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VALUE OF XBRL TO

INSURANCE COMPANIES

Gary A. WicklundEagle Technology Management

Financial Services & Regulatory Reporting Special Interest Session

8thXBRL International Conference November 3-7, 2003


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OUTLINE

INSURANCE INDUSTRY PROBLEM STATEMENT

INSURANCE REPORTS

DEVELOPMENT PROCESSES XBRL TAXONOMY

IMPACT

BENEFITS CONCLUSION


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InsuranceCompanies


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INSURANCE INDUSTRY

Types of Companies Life, Accident and Health

Property and Casualty

Health

Fraternal

Title

Transaction Processing

Financial Reporting


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PROBLEM STATEMENT - INTERNAL

Accounting Systems Generally Accepted

Accounting Principles(GAAP)

Statutory Accounting

Principles (SAP)

Cash/Management

Investments

Stocks and Bonds

Real Estate

Mortgages

Reinsurance Policies

Health

Life

Property

Documents

Audits

Actuarial

MD & A Directors & Officers

Reports


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PROBLEM STATEMENT - EXTERNAL

Financials Annual Report GAAP

Quarterly Reports

10K and 10Q

Regulatory State Statutory

Federal

NAIC

Statistical agencies

Tax Returns State

Federal

Web Posting

Marketing Financials

Bank

Financials

Credit Reports


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PROBLEM STATEMENT KEY ISSUES

Insurance GAAP Income Statement

Balance Sheet

Cash Flow

Stockholders Equity

Notes to Financial

Insurance Statutory

FinancialAssets, Liabilities, etc. Schedules and Exhibits

ExpandableBonds, Stocks, Real Estate, etc.

Supplements


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GAAP BASIS OF PRESENTATION The following reconciles the statutory net income of xxxx, as reported to regulatory

authorities, to consolidated GAAP income:

For the Year Ended December 31 (in millions) 2002 2001

Statutory Net Income $ (400) $ (202)

Adjustments to GAAP Basis:

Net Capitalization of Deferred Policy Acquisition Costs 432 502

Re-estimation of Future Policy Benefits (30) (75) Elimination of IMR Amortization (7) (32)

Establishment of Deferred Federal Income Taxes (62) (170)

Net Adjustment for Reinsurance (111) 44

Policyholder Dividends (3) 40

Other (102) 63

Consolidated GAAP Net Income $ (283) $ 170


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STATUTORYSummary of Operations (Excluding Unrealized Capital Gains and Losses)

27. .

28. Totals (Lines 20 to 27) 5,902,060,348 5,139,393,287

29. Net gain from operations after 636,412,751 473,819,850

30. Dividends to policyholders 513,979,631 537,858,543

31. Net gain from operations after 122,433,120 (64,038,693)

32. Federal and foreign income taxes 70,367,918 (44,895,725)

33. Net gain from operations after 52,065,203 (19,142,967)

34. Net realized capital gains or (losses) (452,253,199) (182,837,911)

35. Net Income (Line 33 plus Line 34) (400,187,996) (201,980,878)

CAPITAL AND SURPLUS ACCOUNT

36. Capital and surplus, December 31,


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Software Vendors


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DEVELOPMENT PROCESSES

Education Insurance Accounting and Systems Administration

Insurance trade associations

Review XBRL Taxonomies

US GAAP Commercial & Industrial US Banking and Savings Institutions

XBRL GL

Financial Reports

Software Vendors Development Notes

Elements

Links


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XBRLSpecifications


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XBRL TAXONOMY

Proof of Concept Build Insurance Taxonomy (statutory)

Identify Insurance Company Data

Create Instance Filexxxxxxxx.XML

Extract Data from Instance File (.XML)

Spreadsheet Add-in

Build Display Style Sheets


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PART OF xxxx.XSD SCHEMA


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XBRL TAXONOMY

Stage of Compliance 1.0 Specifications

Selected audience

Insurance GAAP

Insurance Statutory

Build in 2.0

Build in 2.1


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InvestorCommunity


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IMPACT

Creation of a standard in the insurance industry

Standard for reporting insurance financials

Sharing of data between insurance companies,regulators, and financial institutions

Migration from paper reporting to electronictransfers

Use of web based applications over the internet


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Auditors


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BENEFITS

Higher quality information Faster and more accurate information

More useful/efficient information for analysis

Linkage of relevant information Cost savings to the insurance industry

Provide delivery of financial information via theinternet for auditors

More complete and frequent information


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State Regulation

FederalReporting


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STATE AND FEDERAL REQUIREMENTS

State Specific Requirements Synopsis Forms

Transaction Information

Compensation Schedules

Federal Requirements

Authorized Reinsurers

Medicare Supplement

Sarbanes-Oxley Act Gramm-Leach-Bliley Act

Others


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XBRLSpecification

Software Vendors

Auditors

State Regulation

FederalReporting

InsuranceCompanies

InvestorCommunity


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QUESTIONS?

Gary A. Wicklund Eagle Technology Management

[email protected]

319-373-2333 x16

www.EagleTM.com
mailto:[email protected]://www.eagletm.com/http://www.eagletm.com/mailto:[email protected]

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