Introducing IFRS 17 PaaS: A game changer for insurers
April 7, 2021
April 7, 2021
IFRS 17, an International Financial Reporting Standard issued by the International Accounting Standards Board, comes into effect on January 1, 2023. As the replacement of IFRS 4 on accounting for insurance contracts, IFRS 17 completely changes the way insurance contracts are reported on the balance sheet and income statement.
In this article we outline the key challenges IFRS 17 poses for insurers and explain how Accenture’s new IFRS 17 PaaS (Platform-as-a-Service) can help to resolve them.
The IFRS 17 standard foresees dedicated measurement models for each type of (re-) insurance contract. It applies to the recognition, reporting and valuation of all types of (re)insurance contracts and has an impact on the whole finance & risk landscape, from source systems, business warehouses, valuation engines up to consolidation & reporting tools. As with Solvency II, resolving underlying data and technology challenges will be the most time and resource consuming activity. Challenges for the business should also not be underestimated because a clear understanding of the newly reported figures and underlying assumptions remains the first priority.
Underlying data challenges:
Underlying technology challenges:
Underlying business challenges:
Accenture has custom-built an IFRS 17 platform for one of its non-life-chartered insurance clients in Europe operating globally. We are now opening this platform as a Plug & Play PaaS to benefit all our insurance clients. The platform leverages open source programming languages, runs in the Cloud, and covers the end-to-end IFRS 17 chain, from the projection of the actuarial cash flows, to the calculation of the IFRS 17 disclosures and the accounting. Implementation is fast with no software licensing costs, plus the platform is modular enough to take into account the specific customization requirements of every insurer and will be extended in the near future to cover a wide range of finance-risk-actuarial regulations such as IFRS 9, Solvency II, local GAAP modelling…
Want to know more about our IFRS 17 PaaS (Platform-as-a-Service)? Please reach out to Mathias Heyse.