"For decades the SEC has sought to harness technology to provide a mechanism for allowing investors, Commission staff, data aggregators, financial analysts and other data users to efficiently analyze and compare the available information about variable contracts," explains Guy Stanzione, Compliance Services Director at Toppan Merrill in a new post.
In 2020 the US Securities and Exchange Commission (SEC) adopted a new rule on Updated Disclosure Requirements and Summary Prospectus for Variable Annuity and Variable Life Insurance Contracts. This means that from 1 January 2023, variable product issuers of actively sold contracts will be required to use Inline XBRL (or iXBRL) to file registration statements and definitive updates, providing both human- and machine-readability.
The post sets out the disclosure items that will need to be digitally tagged using Inline XBRL. These, the SEC believes "are most suited to being tagged in a structured format and will be of greatest utility for investors and other data users that seek structured data to analyze and compare variable contracts."