The new financial reporting standard IFRS 17 is the biggest change to insurance accounting requirements in more than two decades. It represents a single global accounting standard for the entire insurance sector, and goes far beyond a change in accounting policy only.
In helping clients to implement IFRS 17, we can see that the industry faces tough challenges in understanding the operational impacts on data, systems and processes. The new standard has been keeping the insurance industry busy for years – which is why EY has compiled this new publication. Contributed by insurance companies and supplemented with articles by EY insurance professionals, it comprises a handbook of best practices and analysis of the most critical questions relating to IFRS 17.
It provides a framework for understanding the IFRS on a technical level and presents a discussion of solutions on how to meet the high burdens of IFRS 17.
IFRS 17 is scheduled to be applied for reporting periods starting on or after 1 January 2021. Its dynamics will not only have implications on the financial disclosures of insurers – it will also have
profound operational impacts on all aspects of the organisation.
EY is already supporting many insurers across the globe in implementing IFRS 17 and we can see that the industry faces tough challenges in understanding the operational impacts on data, systems and processes. IFRS 17 requirements trigger questions around:
• the fundamental data management strategy, including data quality, storage and archiving
• the end-to-end systems architecture design and
• the different actuarial, risk and accounting processes that will support the future reporting process and how they will interact
In the next years insurers will need to implement significant technical and practical changes in order to appropriately respond to these questions. We believe the most efficient way to approach this will be through an integrated operating model and technology platform for Finance and Actuarial, enabling them to work as one unified team with one seamless calculation and reporting system.
If you have further questions around this complex standard, please do get in touch.