Transitioning to IFRS 17 "Insurance contracts"
All insurance companies and pension funds will eventually have to transition to IFRS 17. To ensure a quality and on-time transition, it is imperative to get prepared well in advance and plan for the significant changes and challenges inherent in the new standard.
1. Training and insights on the requirements and new regulations of IFRS 17
We will conduct employee trainings to give them a deep dive into the requirements of the new IFRS 17 standard, help them understand how it differs from IFRS 4 and clarify the complexities and principles of the new approaches. This will give you a solid foundation to start implementing the standard and help various departments gain a common understanding of the standard’s requirements.
2. GAP analysis and assessment of the impact of IFRS 17 on business operations
To help companies understand the scope of the changes they need to implement, we can:
- Conduct a high-level assessment of how the requirements of IFRS 17 will impact a company’s financial results
- Benchmark the new requirements against current reporting methodology and actuarial models
- Analyse and evaluate the capacity of current systems against the requirements of IFRS 17
- Identify which methodological approaches need to be adjusted or developed to meet the requirements of IFRS 17.
3. Development of methodologies and approaches
Our professionals will help you transform your current methodologies and develop new approaches to ensure compliance with IFRS 17. We can:
- Develop a methodology for estimating provision in accordance with the requirements of IFRS 17
- Design models for assessing insurance liabilities, including algorithms for calculating fulfilment cash flows, risk adjustments for non-financial risk, etc.
- Design and update journal entries for accounting events by insurance contract type
- Draw up a complete list of attributes for accounting events, taking the necessary segmentation into consideration
- Develop internal regulations for implementing changes to the methodological base
- Create a roadmap for the methodological requirements of IFRS 17
4. Business process transformation and automation
The deployment of new methodological approaches will require a major transformation of business processes that will involve the significant improvement or replacement of IT systems.
We can help you:
- Develop business requirements and technical specifications to update the company's IT systems and ensure IFRS 17-compliant automated calculations, including the necessary attributes
- Identify technology evaluation criteria and prepare recommendations for selecting and implementing software
- Support the implementation of the necessary changes to existing information systems or support the deployment of a new one
- Develop/update flow charts for target business processes, including control procedures
- Develop a role matrix for company subdivisions within target business processes
- Develop coordination protocols for subdivisions
- Create internal regulations for implementing changes to the company’s business processes