The introduction of IFRS 17 will lead to significant changes across the business. The workshop sessions will help to:
- Align key stakeholders across the main business units on the technical aspects of reporting under a new standard.
- Ensure that key stakeholders are making decisions based on a sound understanding of the IFRS 17 principles.
- Provide your team the grounding for next steps, including the gap analysis and determine the transition project plan.
By analysing the gaps between your current process of financial reporting and a process under the new standard, you will have:
- An indication of the areas that are going to be most affected from your current IFRS reporting. This will consider:
- The major data gaps / system that are likely to exists
- The differences from your current accounting policies and methodologies to IFRS 17 for key products
- The gap between the processes that will be needed for IFRS 17 and your current processes. It includes an assessment that measure the current readiness and help you to set priority for change in key areas in scope.
- An estimation of resources required for the future project.
- A key input to understanding the deeper systems impact.
Financial impact assessment
The financial impact assessment will help you to:
- Gain deep understanding of the scope and measurement models introduced by the new standard – IFRS 17.
- Acknowledge the key concepts of the measurement models such as coverage units (CU), level of aggregation, risk adjustment, and PAA eligibility.
- Identify high priority products, measurement model, and analyse develop profit signatures and its volatility.
- Build up understanding of where IFRS 17 is likely to materially different from current accounting.
- Derive the baseline input for your future multi-year integrated IFRS 17 implementation plan.
After understanding the result from the performed impact assessment and the gap between what your company has and what is needed, the next challenge would be on making the leap to the implementation stage in the near future. You might be wrestling with how to start this long-term IFRS 17 implementation project – this is where the technical design stage comes into play as it sets the foundation for the other phases towards implementation stage.
During this phase, we will work with you to provide industry knowledge about how your peers are planning to account for their business, produce new charts of accounts and disclosure requirements, evaluate the target operating model, and design the likely analyst packs and communications. Our insurance experts will partner with you to help you understand the areas to focus on when designing your underlying systems architecture.
To succeed in these endeavors, we advocate taking a “soft design” approach which introduces a flexible way of working following three well-established principles.
The new standard requires insurers to restate their opening balance sheet to reflect their existing business. This one-off exercise should not be overlooked. For life companies this is a critical component of P&L for next ten plus years. PwC can support you with the design and implementation of the opening balance sheet and advise you on how to convert your existing processes to your target financial architecture, using existing data in the most effective way.