ED 5 comment letter final

International Headquarters Correspondence Address KPMGuilding 1-2orsetiseBurgemeesterijnderslaan0 London1185Cmstelveen EC4YAETheetherlands Unitedingdom Telephone+4420)694640Fax +4420)694429Email terry.harding@kpmg.co.uk Peter Clark Senior Project Manager Your ref International Accounting Standards Board 30 Cannon Street Our ref th/813 London EC4M 6XH Contact Terry Harding United Kingdom +44 (20) 7694 8640 10 November 2003 Dear Peter Exposure Draft ED 5 – Insurance contracts We appreciate the opportunity to respond to the International Accounting Standards Board’s exposure draft of its proposed IFRS, ED 5 – Insurance contracts. This letter represents the views of KPMG International. We support the IASB’s effort in implementing a standard on insurance accounting. We acknowledge that the two phase approach is not ideal, but we accept that it is necessary given the difficulties in developing a comprehensive standard in time for those insurers applying IFRS for the first time in 2005. We therefore support the IASB’s decision in issuing an exposure draft on Phase I but we see Phase I as no more than an important stepping stone towards a final standard. We encourage the Board to place the highest possible priority on completing a comprehensive, high quality Standard before 2007. We agree with the approach taken in ED5 to define an insurance contract, to distinguish it from other contracts, particularly ...