An unprecedented wave of new reporting and regulatory requirements are driving changes that are significantly impacting the way insurers manage their business.
The new financial reporting standard IFRS 17 will undoubtedly represent the most significant change to insurance accounting requirements in over 20 years.
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 organization.
The insurance industry faces tough challenges in understanding the operational impacts on data, systems and processes. IFRS 17 requirements trigger questions around
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.
There are significant opportunities to use IFRS 17 as a catalyst for further changes needed in supporting functions such as Finance and Actuarial. It is clear that no single approach works for the entire industry. Whatever the approach, we believe that only with a truly integrated solution that closely connects the data, systems and process environment between Finance and Actuarial will insurers be able to meet the challenges of the future.
This paper makes the case for why insurers need to understand the new data, systems and process challenges before they start committing to a demanding implementation journey that is likely to be transformational.
It also looks at the considerations and options for an IFRS 17 solution that will ultimately need to combine what is needed to comply with the IFRS 17 requirements and at the same time have to meet the insurers’ finance strategy and business objectives. Lastly we provide practical actions to guide an implementation that’s focused, sustainable, and able to deliver the expected results.