IFRS 17 - Are you Ready to Take Action?

 

IFRS 17 pressures CFOs and finance functions to increase efficiency, as well as achieve a higher level of integration between finance, actuarial and risk processes.

 

The impact will be felt across the finance function and may require changes to both strategic financial management processes and the finance operating model.

 

Of course, from a solution point of view, data integration is needed to/from many data sources to perform the needed calculations but it’s also important to take into consideration that the entire financial systems’ architecture will be impacted: operational systems, actuarial models, general ledgers, consolidation and performance management systems will change to support the new measurements, presentation and disclosure requirements in IFRS 17. That’s why it is crucial to recycle the common information when already available in the existing systems and to ensure qualitative and quantitative disclosures.

 

Are you prepared for IFRS 17?

 

The new reporting requirements will need the performance management and KPI framework adjusted. Currently, the key metrics are based on volume, revenue and profitability, while the new standard will impact the entire performance management process.

 

Also to be taken into account is the ability for data to be posted back to source systems as adjustments (e.g adjustments posted back to ledger and sub-ledger).

 

Last but not the least, it is crucial to manage the historical data archiving requirements.

 

Did you consider all the challenges above?

 

IFRS 17 will go into force in 2021. Tagetik is facing the challenges of IFRS 17 by working on a “starter kit” solution which includes the calculations necessary to provide reporting on insurance contracts for both life and non-life business segments as per the IASB’s guidance and other relevant regulators. The Starter Kit for IFRS 17 uses a powerful engine to upload data from different data sources, perform calculations and examine the data. But the IFRS 17 is a still moving pattern and almost all the insurances are in the best case in a pre-study phase. So what we think makes sense for us is continuously sharing the current status of work of the solution with the insurances and enriching the solution with the upcoming needs and requirements.

 

”Tagetik software for IFRS 17 standard

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