Demystifiying IFRS 17 implementation
Addactis has led more than 50 IFRS 17 implementations around the world in recent years in which its experts have been able to acquire solid and recognized expertise.
Thanks to its internal Taskforce composed of R&D experts, actuaries, accountants and software designers, Addactis has succeeded in answering the main questions of insurers concerning IFRS 17:
-How to understand the regulations.
-How to transform all the principles into a standard solution and end-to-end flexible covering all topics: Actuarial (Cash Flow/RA/CSM Engine), Finance (Subledger) and IT (ETL and Process Dataflow).
As in some countries, the IFRS 17 standard came into force in 2023, the experts supported customers in their implementation projects and noted a multitude of post-implementation feedback from many European insurance companies.
Having seen the importance of all contributors in making this IFRS 17 journey a redundant success, we will highlight what we have seen so far in our implementations.
Transition requirements based on our customers’ feedback
The full impact of IFRS 17 will be felt for a long time, partly because KPIs and metrics will change. So, you must be aware of your transition decisions and know how to choose well the most appropriate approach.
Harry NIKOLAOU, Head of Accounting IFRS 17 and Kevin POULARD, Head of Actuarial R&D took part in a filmed Q&A session to share their expertise and customers feedback during the IFRS 17 implementation projects.
They represented the main challenges that our clients face during IFRS 17 transition, explained the differences between Full retrospective approach, Modified retrospective approach and Fair value approach and then shared their insights and tips for proper implementation.
Customers main challenges during IFRS 17 implementation
The IFRS 17 Standard brings very specific challenges to the financial and actuarial teams of insurers who are not only responsible for producing figures and analyzes ever faster, but also with more transparency and more controls and granularity.
But it also offers a unique opportunity to be IFRS 17 compliant, update technology, processes and strengthen cross-departmental collaboration deemed necessary for a successful transition.
The main challenges mentioned in this experts’ talk are the following:
- Choose the most appropriate approach to lead the transition between the current accounting standard to IFRS 17.
- Find skilled people within the company for data interpretation, limitation, and methodology preparation, who can understand the calculations and the results and prepare the opening balances.
- Determine the projected profits of their legacy portfolios, find the historical data and all the data to perform the Full retrospective approach.
- Acquisition of different IT systems and hard to and from all the entities systems.
- Build the opening IFRS 17 balance sheet, analyze, and understand the drivers of results.
- Have sufficient time to test updated processes and controls.
- Find an IFRS 17 solution provider who understands their actuarial, IT, financial and accounting issues.
- etc.
So how Addactis’ customers have managed to overcome these challenges thanks addactis® IFRS 17 solution?
The transition isn’t easy, but with the right approach and mindset, you can take advantage of opportunities and achieve the best results.
What we have seen with our current clients in the implementation phase is willing to try to leverage on our addactis® standard IFRS 17 solution and use it as much as possible to produce the transition results and especially when we are going back to the full retrospective and modify the retrospective approach.
Learn our key findings on how to choose the most appropriate approach based on their expertise and customers feedback during the IFRS 17 implementation project, by watching our Experts’ Talk on IFRS17 Transition.