Why you should use a Target Operating Model (TOM) - based approach: Part 1Achieving maximum business benefits from an IFRS Insurance implementation |
Based on the four dimensional assessment of the organizational impacts of IRFS insurance used by the Deloitte member firms, it is possible to see how a TOM-based approach could contribute to the business benefits of a large scale regulatory-driven change such as that from IFRS Insurance:
- Part 1 looks at Reporting to the Market
- Part 2: Strategy and Governance
- Part 3: Organization, People and Culture
- Part 4: Infrastructure
1. Reporting to the Market
- The extensive changes that will be imposed by the new IFRS Insurance demand that the whole organisation is capable of operating using the new profit drivers well ahead of the first release of the IFRS earnings under the new basis.
- The consistency across the market (and often within an insurance multinational group) and the increased transparency that the new IFRS will produce for the first time for several insurance markets is likely to generate a demand that the communication of performance is strongly aligned with an operating model that uses it to manage performance and allocate resources.
- The combined arrival of IFRS Insurance and Solvency II in the short space of a few years from now adds pressure to evolve any Target Operating Model developed to guide the Solvency II implementation and to ensure that both profit and capital dimensions are aligned within the insurer’s operations feeding seamlessly to the market reports and the all-important return on capital that could benefit from an unprecedented level of consistency across Europe.
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