Who does it impact?
Insurance entities that issue long duration contracts including universal life type contracts, whole life and term life. LDTI applies to US GAAP reporters, including dual IFRS / US GAAP reporters.
What is the scope?
Following on the heels of IFRS 17, LDTI will highlight the lack of investment in and flexibility of finance systems that have been in place over the last few decades. A survey by PWC found that over 75% of impacted insurers expected some level of change to their companies 3 year business plan as a result of LDTI requirements.