普华永道-Selecting-the-right-systems-vendors-for-IFRS-17-PwC_8页_1mb

报告摘要

IFRS 17 Systems Vendor Selection Summary

Introduction

IFRS 17, issued in May 2017, requires a significant and costly transition for most insurance companies. Initially implemented in 2019, the deadline was postponed to January 1, 2022. While this extension provided some relief, it's crucial for companies to accelerate their preparations, especially in selecting the right systems vendors to support the transition. Vendors are now more prepared than they were six months ago, and understanding the specific system requirements can help in making informed vendor choices.

What IFRS 17 Requires

IFRS 17 mandates several key activities for insurance companies:

Data Preparation: Actuarial and accounting teams need data in the correct format, including separating investment components from insurance contracts, calculating expenses and acquisition costs, and determining discount rates.
Data Validation: Ensuring data accuracy at the appropriate level of detail and maintaining data integrity across all reporting outputs.
Calculation Engine: Performing complex calculations such as contractual service margins, risk adjustment, profitability testing, and cash flow calculations.
Posting: Accurate posting of entries based on portfolio segmentation, mapping to charts of accounts, and clear aggregation logic.
Reporting: Generating reports at various levels of detail, including exception reports, threshold reports, and standard reports for internal review, with a focus on balance sheets, comprehensive income statements, and disclosures.

Five Critical Vendor Capabilities

To meet IFRS 17 requirements, vendors must have the following five key capabilities:

Master Data Management and Aggregation
- Provides a predefined IFRS 17 data model.
- Offers flexible data storage and robust data feeds.
- Includes predefined rules for data aggregation and posting.
- Enables integration with general ledgers and actuarial models.
- Supports audit trails for tracking results.
Orchestration
- Manages end-to-end workflows with clear reporting processes.
- Coordinates and assigns tasks and resources.
- Develops scripts to trigger ETL, calculations, postings, and adjustments.
- Enables auditing of data inputs, outputs, and manual interventions.
- Offers flexibility to adapt to user-specific needs.
Calculation Engine
- Must handle a wide range of calculations, including profitability testing, cash flow discounting, and contractual service margin.
- Requires powerful technology to process large volumes of data.
- Offers detailed tracing and documentation of calculation inputs and outputs.
- Includes built-in data management and orchestration frameworks for transparency and control.
Rules Engine
- Provides predefined rules for generating postings.
- Must be easy to deploy and support custom rules.
- Offers an intuitive interface for finance professionals to configure as needed.
Reporting
- Supports both predefined and ad hoc reporting.
- Utilizes in-memory storage for balance sheets, comprehensive income statements, and disclosures.
- Enables visually engaging and intuitive reports tailored to the insurer’s needs.
- Monitors process status and analyses postings generation.

No Time to Stand Still

The transition to IFRS 17 is complex and requires a comprehensive solution. Currently, fewer than ten vendor solutions are available that can fully support the requirements. It is recommended to evaluate vendors through proofs of concept, working with 2-3 vendors over the next 2-3 months to determine the best fit for your needs and IT environment.

Contacts

Stephen O'Hearn
Global Insurance Leader, PwC Germany
+49 89 38 00 69 688
stephen.t.ohearn@pwc.com
Alex Bertolotti
IFRS 17 Insurance Leader, PwC UK
+44 207 213 1253
alex.bertolotti@pwc.com
Alwin Swales
Financial Services, IFRS 17 Insurance, PwC UK
+44 207 212 2032
alwin.swales@pwc.com
Richard de Haan
Actuarial Leader, PwC US
+1 646 471 6491
richard.dehaan@pwc.com
Ruud Sommerhalder
Asia Pacific Insurance Leader, PwC Hong Kong
+852 5506 4004
ruud.s.sommerhalder@hk.pwc.com
Diego Cervantes-Knox
Financial Services, IFRS 17 Insurance, PwC UK
+44 7704 074 383
diego.cervantes-knox@pwc.com