Three approaches to achieve your long-term vision through IFRS 17 implementation
1. Actuarial-driven solution: leverage existing DSP for IFRS 17, and build on MCEV/Solvency II tools and models wherever sensible.
Pros
- Probably easiest and fastest solution to implement
- Built primarily on existing reserving, MCEV and Solvency II tools and processes
- Lower investment required
Cons
- Less efficient system setup (more add-ons)
- May not fit the future IFRS 17 reporting timelines and new requirements (e.g. controls)
- Considerable manual steps means higher operating costs
2. Integrated IFRS 17 solution: build IFRS 17 capabilities through the introduction of an integrated solution that connects the finance and actuarial systems
Pros
- Opportunity to implement a new, more efficient system setup while leaving old systems intact
- Shorter time to benefits realization
- Ancillary benefits in areas outside IFRS
- Information at a more granular level
Cons
- Multiple data sources and complexity of the process means higher implementation risks
- Large upfront investment required for new solution with potentially limited lifespan
- Critical path risk (need a “plan B” or parallel runs)
3. GL embedded solution: provide an IFRS 17 platform through a central finance system
Pros
- Higher flexibility of the implemented solution
- Enables addition of other requirements (e.g. IFRS 9 and Solvency/RBC)
- Lower critical path risk
- Single-source of truth for Finance, Actuarial and Risk
Cons
- Takes longer to realize benefits from migration
- Likely to have some manual steps and solutions resulting in higher cost
- Could be expensive to implement and technology still unproven
Ten key actions to kickstart your IFRS 17 implementation
These ten steps encompass three broad categories: impact assessment (1–3), stakeholder engagement (4–7) and implementation (8–10).
- Understand IFRS 17 requirements
- Perform gap analysis (using pre-populated templates where possible)
- Conduct impact assessments around architecture, data, systems and processes
- Conduct business and technology briefing sessions
- Report findings and implementation approach to Board, executive team and key stakeholders
- Discuss findings with external auditor and regulators
- Seek approval for next Design phase
- Mobilize project resources and key internal and external stakeholders
- Provide core team training
- Develop implementation roadmap and budget
Summary
As you begin IFRS 17 implementation, we help you assess its financial and operational impacts, communicate with stakeholders and mobilize an implementation plan. Our tools help structure the project in a complete and efficient way, allowing you to focus on your most important business issues.