Andorra Approves New Accounting Plan for Insurance Sector

Andorra Government Approves New Accounting Plan for Insurers

New framework to standardise financial reporting and boost oversight from 2027

The Andorran government has approved a dedicated accounting plan for insurance entities, introducing a comprehensive framework tailored to the sector's unique operations for the first time.

The decree establishes uniform standards for all insurers based in the Principat, aiming to ensure their annual accounts accurately depict their economic and financial positions. Previously, local rules covered specific areas such as technical provisions but lacked an overarching system for recording, valuing, and presenting financial data.

Key elements of the plan include guidelines on accounting for assets and liabilities, procedures for preparing annual accounts, and standardised financial reporting templates. It also features a custom chart of accounts suited to insurance activities.

Government officials stated the changes will enhance the quality, transparency, and comparability of sector information. Uniform criteria should simplify financial understanding, streamline entity management, and support oversight by the Andorran Financial Authority (AFA).

The plan takes effect for annual accounts ending 31 December 2027, giving insurers ample time to update their procedures and systems.

This move fills a longstanding gap in Andorran regulations, promoting clearer and more reliable financial insights across the insurance market.