IFRS 17 Forecast and Planning Service Offering

1. Comprehensive financial planning and forecast modelling:

• General Measurement Model (GMM): Detailed and simplified (i.e. using scaling techniques for new businesses) modelling of future cash flows, contractual service margin (CSM), and risk adjustments to ensure robust financial projections
  

• Variable Fee Approach (VFA): items included in GMM with an additional forecast for changes in the Fair Value of Underlying Items (FVUI)

• Premium Allocation Approach (PAA): Simplified approach that can rely on current planning and forecasting methods based on IFRS4

2. Integration of actuarial processes and Financial Planning and Analysis (FP&A):

• Aligning actuarial models with financial planning to produce reasonable and realistic estimates

• Integration of IFRS 17 FP&A processes across various reporting regimes

• Bridging the gap between actuarial assumptions and financial projections to minimise discrepancies

3. Scenario analysis and sensitivity testing

• What-if scenarios and sensitivity analyses to explore various business outcomes and their financial impacts

• Adjustment of projections to reflect changes in key assumptions

4. Training and Change Management

• Workshops and training sessions to ensure teams are proficient in new models and tools

• Project management and leadership support to ensure smooth transition to IFRS 17 compliance

5. Software solutions

• Implementations using Deloitte’s proprietary software, such as Finevare (more details below), ARIA and mpFactory

• Implementations using third-party software, such as Prophet or other commonly used actuarial solutions

Deloitte’s approach to forecasting and planning focuses on ensuring maximum gains from transitioning to IFRS 17-based processes and methods, to create a competitive advantage for our clients. Our extensive experience enables clients to benefit from increased transparency, improved decision-making, and efficiency gains. Most importantly, we provide expert advice on optimal IFRS 17 decisions while ensuring full regulatory compliance.
 

Finevare is a Deloitte's comprehensive and robust IFRS reporting solution, developed to support end-to-end IFRS 17 and IFRS 9 processes including efficient planning and forecasting. With a range of functionalities tailored to meet the specific needs of financial institutions, Finevare ensures regulatory compliance and enhances business analytics.

Key features for planning and forecasting

1. Automated forecasting and planning

• Finevare automates IFRS 17 calculations, making the forecasting process more efficient and accurate.

• It supports generation of existing business runoffs and the incorporation of expected new business, allowing for full customisation of new business assumptions.

2. Scenario and what-if analyses

• Finevare helps create, store and compare multiple versions of forecasts and plans. This flexibility helps to deep dive into different scenarios and develop understanding of potential outcomes under various assumptions.

•  Automated sensitivity analysis processes support IFRS 17 disclosures and help understand the impact of changes in key assumptions on financial outcomes.

3. Cash flow generation engine

• Cash flows are generated based on predefined patterns and parameters, which are essential for accurate forecasting and planning.

• Cash flows are allocated to current and future services, ensuring that projections accurately reflect the timing and magnitude of expected cash flows.

4. Comprehensive Reporting and Disclosures

• Finevare includes out-of-the-box disclosures and customizable reports, streamlining the reporting process and enhancing management information capabilities.

Finevare can be delivered in a Software-as-a-Service (SaaS) or on-premise model. The implementation process includes project initiation, customisation, user acceptance testing, go-live support and post-go-live services. Our teams of actuaries, accountants, analysts and developers ensure a seamless implementation and ongoing support.