IRS Releases 2020 Discount Factors for Insurance Companies
February 23, 2021
By Jason Lee
On November 4, 2020, the IRS issued Revenue Procedure 2020-48 which prescribes the discount factors to be used by insurance companies to compute discounted unpaid losses and discounted salvage recoverable for the 2020 accident year. For convenience, the revenue procedure also includes discount factors for losses incurred in the 2019 accident year and prior.
The revenue procedure is applicable to all insurance companies required to discount unpaid losses under IRC Sec. 846 and all insurance companies required to discount estimated salvage recoverable under IRC Sec. 832.
In addition, EisnerAmper has created a tool to help you calculate your discounted loss reserves. Access our easy-to-use (and FREE) template by filling out this brief form – then you’ll be able to simply input your loss reserves by accident year and line of business; our tool will do the rest.