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January 2022 seems a long way for an operational focus. Insurers in Australia, like their counterparts around the globe, do not necessarily have IFRS 17 as part of their “top of mind” activity. The reality is that the insurance industry has slowly, yet constantly evolved due to market changes, previous regulations (i.e. Solvency II in Europe and LAGIC in Australia), and the natural evolution of their business.
However, IFRS 17 is by far the biggest insurance change, on a global scale, in the last 20 years. It requires substantial effort and investment from the industry in terms of resources, data and systems’ strategy. This is without considering the main impact from a business standpoint on the balance sheet, income statement, disclosure and, generally, reporting area.
In a recent mini survey with Australian insurers we learned three key aspects of their current journey:
So, what is the best approach?
The Deloitte framework is simple, logical and effective. It is the synthesis of our growing portfolio of active IFRS 17 projects across the three key regions: the Americas, Asia-Pacific and Europe. It highlights the key pre, post and implementation phases in chronological order.
If we explore the above five phases, we realise that the market focus is around steps 2 and 3, depending on geographical area, size and type of organisation.
So, if we want to analyse those two steps further.
*The assumption made is that as per 95% of insurers require a sub-ledger to comply with the granularity of data requested by the regulator
Three years ago Deloitte established an ‘IFRS 17 task force’ of experts to cover all the key aspects of the five phases above: comprised of actuaries, technical accounts, finance transformation and systems & data experts to deliver a unique experience to our clients. The goal to be prepared to face every single aspect of this complex journey.
For more, please contact Kico Amata.
Kico is a director leading the IFRS 17 campaign from a finance systems standpoint, supporting clients in making the right systems and architectural decisions. With over 20 years’ experience in delivering Finance Transformation Programs across France, Italy, the UK and now Australia.