Document Type : Original Research Paper
Authors
Department of Public-Financial Management, Islamic Azad University, Firuzkoh Branch, Tehran, Iran
Abstract
Supervision of insurance companies has always been one of the most important concerns of governments. In insurance, paying the price of providing the service before the service (payment of damages) and the ability to fulfill obligations by the obligee (insurer) is one of the most important challenges facing the insurers, to the extent that it has forced governments to create strict and restrictive laws. Among these laws is the existence of insurance companies' ability to face risk and compensate for losses caused by major risks such as natural disasters or unexpected events. In Iran, there is a clear contradiction between insurance and accounting laws. With the formulation of accounting standard 28 in 2008, the gap between this standard and insurance realities became apparent. In insurance, it is always important to correctly estimate the damage and create a sufficient reserve for a risk, at an unknown time or place, but in accounting standards, to create a reserve with the above conditions due to the lack of identification of the beneficiary or the correct estimation of the amount and time of the loss, the liability Unrecognized and additional technical reserve (natural disaster) is not considered a liability. In this research, the results of the implementation of the 28th accounting standard and the failure to calculate the supplementary technical reserve, as well as the effect of the increase in insurance companies' claims on the insurance companies' solvency limit, have been evaluated.
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