Navigating the Path to IFRS 17 Compliance for Late Entrants
For companies joining the IFRS 17 compliance journey later than others, the path to adherence may seem daunting. However, with strategic planning and leveraging technology solutions, late entrants can expedite their compliance efforts and navigate the complexities of the standard.
By studying the challenges faced by early adopters and harnessing advancements in technology, late entrants can potentially avoid pitfalls and adopt more efficient solutions. They benefit from learning from others’ experiences, enabling them to tailor their implementation strategies accordingly. By now, most interpretation and methodology issues are likely already addressed in the market.
What unique challenges do late entrants face in achieving IFRS 17 compliance?
According to our experience, late entrants encounter unique hurdles in the IFRS 17 landscape:
- Time is the primary issue. Playing catch-up means late entrants have compressed timelines to understand IFRS 17 intricacies, assess impacts, and implement necessary changes swiftly.
- Limited time for data gathering, analysis, and system upgrades can hinder compliance efforts and increase the risk of non-conformity.
- Latecomers may lack in-house expertise, manpower, and budget essential for comprehensive IFRS 17 adoption. The new target operating model requires changes in the collaboration between actuaries and accountants.
- Another challenge is the shift in strategic direction halfway through the compliance approach. Starting with a minimum compliance approach, companies realize that the standard’s complexities require more investment than initially estimated.
How can insurers leverage technology solutions to overcome IFRS 17 challenges?
The good news is that late entrants can now leverage technology solutions to overcome IFRS 17 challenges:
- Agile Data Management, crucial for project success.
- Solutions offering out-of-the-box templates and automated workflows for data processing, validation and transformation will significantly reduce time spent on this step.
- Data analytics tools for anomaly detection, trend analysis, and pattern recognition expedite data processing and enhance accuracy.
- Rapid-deployment Actuarial Modeling
- Integrate actuarial models with IFRS 17 calculations (e.g., expected cash flows and risk adjustment calculations)
- The more embedded the IFRS 17 calculations are, the faster and more reliable the implementation will be.
- Pre-built disclosure templates & ERP integration
- Ready-to-use disclosure templates will help latecomers to optimize financial disclosures
- Seamless integration between the accounting engine and ERPs system is key in the accounting part to ensure consistency and reduce manual effort.
- AI Agents for Automation and decision support
- AI agents can automate repetitive tasks, assist with data reconciliation, and support real-time reporting
- They enhance productivity and reduce the burden on finance teams during peak reporting periods
- Explainability for Trust and Compliance
- Explainable AI (XAI) tools help users understand how key financial outcomes are derived, especially under complex models like IFRS 17
- These tools provide transparency into the impact of assumptions (e.g., discount rates, risk adjustments) and support audit readiness
- Human-in-the-Loop (HITL) for Governance
- Combining AI with human oversight ensures that decisions remain interpretable, traceable, and aligned with regulatory expectations
- This hybrid approach builds trust and accountability in AI-driven processes
🔍 For a deeper dive into how AI agents and explainability are transforming insurance reporting and decision-making, read our full article: The Future of Insurance: The Transformative Power of AI and Results Explainability.
Case Study: Successful IFRS 17 Compliance for a Mid-Sized Insurer
In a real-world case for an Addactis Client, a mid-sized insurer initiated its IFRS 17 compliance project later than industry peers. Facing tight deadlines and resource constraints, the client opted for an end-to-end solution covering the full scope of calculations.
This solution streamlined data processing, enhanced data quality, and expedited compliance efforts.
By leveraging automation features for data validation and transformation, the insurance company significantly reduced manual effort and accelerated its implementation timeline.
As a result, the insurance company successfully met compliance deadlines, gained valuable insights into its insurance portfolio, and positioned itself as a competitive player in the evolving regulatory landscape.
In conclusion, despite entering the IFRS 17 compliance race later, companies can expedite their journey and ensure adherence with the standard through technology-driven strategies.
From agile data management to rapid-deployment actuarial modeling and flexible financial reporting software, technology solutions empower late entrants to overcome challenges, mitigate risks, and achieve IFRS 17 compliance efficiently.
This content was written by our expert:

Harry Nikolaou
Head of Accounting IFRS 17
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