The new global insurance accounting standard for insurance contracts, IFRS 17, requires a raft of changes to how insurers and reinsurers report the results of their insurance operations. Although the standard was introduced in 2017, many insurers are still working through how to comply without replacing their legacy processes and systems. PwC has created the IFRS17 Software solution to enable quick, seamless and cost-effective adoption. That’s why the PwC Poland team behind IFRS17 Software are a Global Innovation Challenge finalist.
Since the IFRS 17 accounting standard was introduced, insurance and reinsurance companies have been wrestling with several challenges around adopting the new rules. For one, the complicated nature of the standard – and the scale of the changes it requires – make complying with it a difficult undertaking. Another challenge is a need to engage multiple specialist advisors to support the implementation, adding time and cost. For insurers, the question is how to move quickly, seamlessly and cost-effectively to IFRS 17 without rebuilding their finance and actuarial systems from scratch.
The introduction of the IFRS 17 standard represented the biggest shake-up of insurance reporting in decades. Insurers and reinsurers knew that implementing the regulation would pose significant problems – not least how to avoid losing the benefit of past investments in processes and systems. We set out to develop a technology-enabled solution that would take the headache out of IFRS 17 compliance.
The project to design the IFRS17 Software was a substantial effort. Applying experience in data analytics and visualisation combined with deep industry and technical accounting knowledge. We wanted to create a predefined, embedded IFRS 17-compliant accounting and actuarial methodology ready to be used from day one, equipped with a strong calculation engine and unlimited scaling capacity. The solution had to reduce complexity and trim excess costs in delivering the end-to-end reporting process required by IFRS 17. It also needed flexibility, so the team designed a predefined input data model and input data wizard that helps users define the necessary data based on the products that will be subject to the calculation run.
Clients worldwide liked what they saw. PwC’s IFRS17 Software enables rapid and timely actuarial and accounting compliance thanks to a solution which comes “preconfigured” unlike other platform solutions. PwC’s IFRS17 Software is available as an “out of the box” or customised version with additional features developed by PwC professionals based on a client’s individual needs. And both options can be hosted by PwC. The software features include interactive reporting, based on sophisticated visualisation and reporting tools, workflow management and risk adjustment. Put simply, it combines everything needed for rapid IFRS 17 compliance with minimal disruption.
Clients are readily adopting PwC’s IFRS17 Software, with a strong global pipeline of customers now in place. This reflects the benefits it’s delivering to businesses: for example, the compliant end-to-end reporting process reduces both complexity and cost, while the data input wizard helps maximize ease of use. And clients are making full use of the choice of delivery models, with more cost-aware clients opting for out-of-the box SaaS and those requiring full customisation choosing enterprise SaaS or on-premise implementation.
One client that’s chosen the latter option is an international insurance group – life and non-life – with 10 entities. The client says it chose PwC’s IFRS17 Software because of the solution’s ‘flexible, business-focused design enabling high customisation and configurability; unique embedded data model minimising data redundancy; automation of quality checks and controlling rules; and PwC’s ability to bring multidisciplinary knowledge across actuarial, accounting, finance and IT.’
Mariusz Spiewak, Consulting Leader, PwC Poland, sums up, ‘The key success factors for our IFRS17 Software? First, it works from day one with PwC acting as the one-stop shop from design to implementation. And second, we deliver subject matter expertise as well as the technology solution, limiting the risk of dealing with multiple advisors, software integrators or providers.’
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‘The key success factors for our IFRS17 Software? First, it works from day one with PwC acting as the one-stop shop from design to implementation. And second, we deliver subject matter expertise as well as the technology solution, limiting the risk of dealing with multiple advisors, software integrators or providers.’
Vicki Huff Eckert
Global New Ventures & Innovation,
TMT Vice Chair, PwC United States
Tel: +1 408 817 4136
Actuarial Team, Partner, PwC Poland
Tel: +48 519 504 424
Data Analytics Team, Director, PwC Poland
Tel: +48 519 506 759