Implementing the new IFRS 17 in your business
Thought Leadership, Innovation, Efficiency, Transformation
The implementation of IFRS 17 will bring significant challenges for insurers that apply IFRS. The new accounting framework for insurance contracts is considered the most significant accounting change since the publication of IFRS 4.
Management will have to evaluate the business impact, volatility and performance using a substantially modified approach for recognition, measurement, presentation and disclosure requirements of insurance contracts under IFRS.
Swiss insurers will have to manage potential balance sheet and income statement volatility
Swiss insurers will have to address a number of issues arising from the implementation of IFRS 17 and IFRS 9 in the future.
Companies should understand the mechanics of both standards to fully assess the impact on current business practices:
- Application of new accounting policies
- Actuarial modelling
- Consideration of the impact of IFRS 9 including analysis of volatility in income statement and balance sheet
- New reconciliations between IFRS, regulatory reporting and managerial reports.
- Synergies with Solvency II
- Introduction of new business and operational processes
- Modifications in internal controls over financial reporting
- IT infrastructure and systems changes
- Data management and their capability to report under the new standard
- Consolidation impact and changes in financial reporting of subsidiaries
How Deloitte can help
Deloitte has been engaged by large insurance companies delivering solutions globally with exceptional outcomes. Our practical approach has been established to enable our members firms to deliver a compelling and effective proposition to address IFRS 17.
Our tried-and-tested approach includes the IFRS methodology used by Deloitte for a successful implementation of IFRS 17 and IFRS 9 in your business:
Our comprehensive range of services to address IFRS 17 includes:
- Complete diagnostics and implementation solution for IFRS 17 and IFRS 9 for insurers
- IFRS 17 and IFRS 9 Readiness Assessment
- Evaluation of impact of new accounting policies including portfolio and product analysis including evaluation of specific contracts to determine appropriate accounting.
- Profitability and performance analysis between current and future accounting framework for insurance contracts.
- Advisory for preparation of reconciliation and GAAP analysis between IFRS/USGAAP/Swiss GAAP FER/Solvency II Requirements.
- Actuarial modelling and actuarial advisory for Phase II.
- Customization of financial statements and key managerial reports under IFRS 17
- Accounting advisory for the application of IFRS 17 and IFRS 9 for complex issues and structured transactions.
- IT Strategy, support and advisory for systems implementation and modification as a result of the implementation of new accounting standards in IFRS.
- Automation of IFRS for measurement, disclosures and financial reporting process.
- Improvement or implementation of advanced finance analytics strategy under IFRS 17 enabling companies to make decisions that drive strategy and improve business performance.
- Advice on data management and master data quality.
- Design and implementation of controls over financial reporting and new business processes as a result of the introduction of IFRS 17 and IFRS 9
- Customized training for IFRS 4, IFRS 17, IFRS 9 and other relevant IFRS standards and interpretations.
- Complete advisory on project management and lifecycle implementation.
- Risk and finance transformation advisory services evaluating the risks and impacts of transformational initiatives and activities on IFRS accounting and reporting policies, practices and controls in place to remain compliant with IFRS and mitigate risks.
- Develop a roadmap of action steps that aligns with the entity’s implementation timeframe formalizing communications necessary to adopt and sustain effective business and future accounting practices.
Our team is composed of a first class multi-disciplinary team including accounting, regulatory, actuarial, tax and other relevant lines of services of Deloitte in Switzerland. We mobilise a core central team who will work closely with you during your implementation project giving you the pragmatic and proportionate approach you are seeking. Our implementation team work seamlessly alongside you in a genuine partnership ensuring an efficient approach.
We have practical experience in IFRS projects where our clients have a large number of subsidiaries that will have to be fully involved in the transition and provide critical data for consolidation and preparation of the complete set of financial statements and explanatory notes. For this reason, our approach enables input from your local teams in a tailored and structured manner by combining local training to give context, requests of information in a clear language. This will help you in the business impact assessment for each country for decision-making in your transition project.
The Deloitte Consulting and Advisory teams in Switzerland have a deep understanding of the business, accounting and IT implications originated in a project of this nature. It enables us to provide you with your IT strategical plan, support and advisory for systems implementation (or modification) as a result of the implementation of new IFRS 17 for insurance contracts.
New IFRS on Insurance Contracts heading towards publication
Insurers’ preparations for the new IFRS accounting rules - Gaining momentum - The results of the Global IFRS Insurance Survey 2013 are now out, reporting on the responses of almost 300 insurers from across Western Europe, North America and Asia Pacific in relation to their preparation for the new IFRS accounting rules.
Deloitte has collaborated with SAP and MSG Global/Nexontis as they developed Insurance Analyser (SAP IA): the solution for the insurance market to meet the requirements of IFRS 4 Phase II.
Financial Journalist Robert Bruce interviews Veronica Poole, Global IFRS Leader — Technical, and Francesco Nagari, Global IFRS Insurance Leader. The podcast provides a general explanation on the Insurance Contract Exposure Draft issued by the IASB. (9 minutes)