Operationalizing IFRS 17 – a process focused approach

The new international standard governing accounting for insurance contracts – IFRS 17 – will profoundly affect the industry. It’s not just about compliance. IFRS 17 will change the way that insurers operate their businesses and stakeholders analyze their business. Insurers must reimagine their business processes to capture and interpret the relevant data, and translate it into actionable insights. Our process-focused IFRS 17 solution means insurers can operationalize IFRS 17 through integrated end-to-end process transformation using our Lean Digital^SM approach and digital technologies.

IFRS 17 aims to increase consistency, comparability, and transparency across the global insurance industry. But most insurers face daunting operational challenges as they scramble to achieve compliance by 2021.

Key operational challenges

Fundamentally, IFRS 17 will have an enterprise-wide impact on end-to-end processes, from sourcing data to the last mile of reporting. The new measurement and reporting requirements will trigger a fundamental shift in:

• Data attribution, readiness and transition such as contract service margin (CSM)
• Change of system architecture
• The degree of collaboration between the actuarial and finance functions
• Redefined control environment around changed data, systems and processes
• Resourcing, training and managing change