Insurers should utilise the implementation of IFRS 17 as an opportunity to also modernise and improve some, if not all of their processes, through the use of technological solutions.
Solutions available include insurance calculation engines, which store the respective data dependencies relating to insurers policies, whilst also automating the IFRS 17 computations and releasing outputs to the respective general ledgers. Thus, satisfying the requirements for a minimum viable product, which will get insurers across the compliance finish line.
Additionally, other solutions aim to automate processes which have been historically (and are currently still) performed manually, creating greater efficiencies, improved accuracy and ultimately transforming the user’s business. As IFRS 17 imposes more granular information requirements on insurers, such solutions will be important in assisting practitioners to manage and centralise their data in a controlled environment, which will auditable.
The latest technology gaining the most traction in the market are cloud-based solutions which provide reporting compliance platforms and enable insurers to connect their data from the various platforms used by users and automate their reporting processes across finance, accounting (external and reporting), risk and compliance.
These solutions essentially allow different business units to work and share information in parallel with each other, rather than through the traditional waterfall approach in a controlled environment, thereby increasing the efficiency of the reporting process. The cloud-based nature of these solutions allows users to access them from different locations around the globe, making them suitable and relevant for the ever-evolving working environment.
The malleability of these platforms is a game changer, as they allow insurers to configure them specifically to their respective requirements and for IFRS 17 compliant disclosures to be generated, as well as accommodating wider reporting requirements. In some jurisdictions these solutions have been tailored to assist management with their regulatory compliance output.
Strategic solution and process decisions will provide different internal stakeholders (e.g. finance, actuarial, human resources, financial planning and sustainability) access to the reporting platform, limiting the need to use ad-hoc communication tools and control document versions. Insurers can create a single source of truth for all their reporting requirements (i.e. to stakeholders, investors or regulators), resulting in greater efficiencies.