Insurance companies face a wide array of complex issues, from managing the risks of a successful business to complying with regulatory standards. We understand that insurance entities also have unique accounting concerns including the following:
- While many insurance companies prepare GAAP statements for internal use, statutory filings are required by all licensed insurance companies. These regulations are very different from GAAP regulations. Because of this, only individuals with industry-specific expertise can fully comprehend the impact of different transactions. And without this understanding, it is difficult for an insurance company to operate successfully long term.
- Insurance companies must comply with unique tax rules and regulations with regard to their income. Many states use forms different from the standard state income tax forms for reporting premium tax income. Also, federal income tax calculations on insurance income include differences in discounting reserves for tax purposes and in making adjustments to unearned premium.
When choosing professional advisors to help you navigate the rapidly shifting waters of the insurance industry, you need experienced, knowledgeable professionals. Our insurance group is an integrated team of audit, tax, and advisory professionals delivering sophisticated business solutions to help our clients maximize their growth potential and remain competitive.
For more information contact Karsten Hatch, CPA, Audit Partner.