Influence of New Accounting Standard to Reserve for Property Insurance Companies

Abstract

Because of the implement of new accounting standard, the premiums’ measurement basis of insurance company is changed, then the earned premiums and the underwriting profit are also influenced. The different measurement of UPR between the traditional accounting standard and the new accounting standard is analyzed with one case. Study shows that the implement of new accounting standard results in the change of UPR’s measurement principle, meanwhile it strengthens the development confidence of insurance company,shortens the profit period of company and improves the professional standards and valuation of the property insurance industry, which is the theoretical basis for the further development of property insurance industry.