Ideally, in just over a year from now, you’ll be computing your 2021 year end IFRS 17 transition balance sheet. Doing so will mean that you’ve successfully delivered one of the most challenging finance and actuarial transformation projects that insurers have ever had to embark on.
To have succeeded will be no small thing. You’ll probably have had to deal with, amongst other items, data, actuarial modelling, management expense and reinsurance held issues. You’ll have stood up an IFRS 17 ledger, and made fundamental changes to your consolidation and disclosure management systems. You’ll have radically overhauled your financial reporting closing processes, your controls and governance procedures, and your financial planning and management reporting platform. And, you’ll have either designed and built your own IFRS 17 ‘calculation and accounting rules and journal posting engine’ or chosen, installed and integrated one developed by a third party.
Our research tells us that whilst many insurers are well on their way to concluding their IFRS 17 projects on time, there are just as many who haven’t really started. Surveys we have undertaken have revealed that as many as 70% of insurers are yet to decide on their calculation and posting engine strategy and/or supplier.
With the clock ticking down, 2021 will be a critical execution year. Regulators in many countries are demanding that insurers submit detailed IFRS 17 implementation plans or even deliver dry run results. We believe it’s crucial that insurers who are behind rapidly assess their options and decide on their implementation strategy.
Our IFRS 17 In A Box is a one-stop-shop solution, designed specifically to meet your IFRS 17 reporting requirements at the lowest possible cost and in the most efficient way. Built using the breadth of PwC’s expertise, it provides access to not only the software, but to implementation and accounting conversion support as well.
The software brings together, in a single application:
An IFRS 17 process workflow.
Data storage and data controls.
An IFRS 17 calculation engine (covering all measurement models for both assumed and reinsurance held business).
An IFRS 17 chart of accounts (CoA).
An IFRS 17 accounting rules and posting engine.
A powerful financial and management reporting layer.
The controls and governance framework required of a financial reporting application.
It also has a host of additional modules, including integrated PAA eligibility and UoA Profitability Bucketing modules. As a result, a recent external assessment by Chartis Research found that IFRS 17 In A Box was a leader in compliance solutions and rated the most complete offering among insurance accounting software in the market.
Furthermore, our IFRS 17 In A Box application is far from being an inflexible opaque ‘black box’. You can configure it via the user interface – so no need for costly IT change requests if you choose to utilise your own CoA, for example. It also contains comprehensive guidance and audit trail reports. This allows users to trace, policy by policy if needed, the entire process from raw cashflow data to the final IFRS 17 Income Statement, Balance Sheet and Roll Forward Disclosures.
And it’s not just the software that we provide. We can also support you with as much or as little of the system integration and accounting conversion work as you like. You can even, should you desire, outsource part or all of the IFRS 17 valuation production process to us. We operate as an extension of your team, playing as wide or as narrow a role as needed to support you in producing your IFRS 17 financials. We can also support in your BaU financial planning and forecasting and management reporting process should this be required.
Get in touch if you would like to know more. We’d be delighted to demonstrate our solution and answer any questions that you may have on our IFRS 17 software and supporting consulting and outsourcing services.
Partner, Insurance Consulting, IFRS 17 In A Box Global Lead, PwC United Kingdom
Tel: +44 (0)7595 850012