Statement of recommended practice on accounting for insurance business (SORP)
The Association of British Insurers has agreed to develop an industry statement of recommended practice (SORP) on accounting for insurance business. This is intended to apply to all enterprises underwriting insurance business in the United Kingdom but not to Lloyd's syndicates. In developing this SORP it is intended to deal with the following features which are unique to insurance business namely premiums, expenses, claims and unexpired risks. At a later stage other features will be dealt with which, although not unique to insurance business, require separate consideration to take account of the special characteristics of insurance business, e.g. investments. In developing the recommended practice outlined in this SORP it is relevant to establish the framework within which financial reporting by insurance enterprises operates.