Andorra approves new accounting plan for insurance entities

The Government of Andorra has approved a new specific accounting plan for insurance entities. This decree establishes a comprehensive and tailored framework for the insurance activity within the Principality for the first time.

The new regulations aim to strengthen the quality, transparency, and comparability of financial information. While previous laws addressed specific aspects such as technical provisions, this new plan provides an integral framework for how companies must record, value, and present their financial data.

Key features of the plan include criteria for accounting and valuing assets and liabilities, methods for preparing annual accounts, and specific financial information models. It also introduces a chart of accounts adapted to the insurance sector. The measure is intended to facilitate both corporate management and supervision by the Andorran Financial Authority (AFA). The plan will first be applied to annual accounts for the fiscal year ending December 31, 2027, allowing entities an adaptation period.