As insurers and the insurance industry begin to implement the International Financial Reporting Standard 17 (IFRS 17), I wanted to take a moment to highlight the benefits that Solidatus can help organisations gain from this wholescale evolution of their digital landscape and the huge transformation it will undergo.
IFRS 17 is revolutionising the insurance industry and requires the deployment of sizable resources if insurers are to remain compliant, significant planning is therefore needed to transform optimally. Given the changes to the way data will be presented it is critical to ensure that the right data is delivered in the right way, as well as modelling the future state while also demonstrating appropriate controls and processes to regulators.
What is IFRS 17?
Designed to achieve the goal of a consistent, principle-based accounting for insurance contracts, the new global Standard requires insurance liabilities to be measured at a current fulfilment value and provides a more uniform measurement and presentation approach for all insurance contracts. Under IFRS 17, companies will measure their contracts based on the obligations that the contracts create and reflect the time value of money in estimated payments to settle claims. IFRS 17 launches in January 2022.
How can Solidatus help you meet these new standards and remain compliant?
IFRS 17 is the biggest change to insurance accounting compliance this century. It requires a substantial transformation in the business process and data flows to meet the new accounting standards. To succeed, firms will need total governance of their data, knowing and being able to prove all provenance, lineage and quality while ensuring appropriate security and controls.
- Solidatus offers a world-class modelling solution that allows organisations to map existing and future state processes and flows, enabling them to minimise transformational risks of both process and data while ensuring optimal compliance.
- Solidatus models can be leveraged as a deployable asset enabling the streamlining and simplification of system transformation, facilitating a move to cloud or allowing the optimisation of data assets, ensuring they are deployed effectively and appropriately.
- Solidatus delivers a data management solution that enables organisation to manage their data in a system-agnostic fashion where lineage and ingestion are as automated as possible across the entire spectrum of a firm’s existing technology stack.
- Solidatus enables firms to address the challenges of creating a common taxonomy and model the delta between the current and future versions.
Of all the positives that can be drawn I believe two stand out: firstly, the ability to turn a regulatory requirement into an operational asset, one that can be leveraged to reduce risk in transforming systems and also enable data governance. Secondly, insurers will be able to achieve true digital agility and mitigate the threat from more nimble challenger institutions that do not have the millstone of legacy technology and systems that have evolved over the last thirty years.