NEW YORK ( TheStreet) -- NEW YORK ( TheStreet) -- If new accounting standards for insurance companies are passed in June the changes are likely to have a major impact insurers' bottom lines, according Moody's analysts. The U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been evaluating the use of a set of globally consistent insurance accounting and reporting standards. The changes are expected to be finalized by June and implemented over the next several years. Both U.S. property and casualty and life insurers would both largely be impacted by the changes to measuring liability which would introduce significant fluctuations in insurers' earnings, says Sandler O'Neill analyst Paul Newsome. "It is a complete redo of the accounting. Insurers like Chubb ( CB - Get Report), Travelers ( TRV - Get Report), Ace ( ACE) and XL Group ( XL) would be effected the most," he said. All insurers are likely to have to reinvest a large amount of money into their operations to comply with the new accounting system and most will have to reinvest in their actuarial process to establish the reserves, Newsome added said. "It is going to be a difficult process to do the transition. Larger companies will have an easier time because they have the resources," said Moody's lead analyst Wallace Enman. Enman explains there are some insurance industry concerns about the standards, including how to determine expected cash flows, the measurement of assets and presentation and disclosure. He added that another factor is that volatility will result if there are fluctuations in interest rates. --Written by Maria Woehr in New York. To contact the writer of this article, click here: Maria Woehr. To follow the writer on Twitter, go to http://twitter.com/newsgirlmw. To submit a news tip, send an email to: firstname.lastname@example.org.