Unlocking The Business Improvement Potential of IFRS 17
IFRS 17 represents a significant change for many insurance companies, both in terms of financial results and finance operating models. Along with additional disclosures, this will have a major impact on the insurance industry and those evaluating its performance.
SAP can support IFRS17 in the following ways:
- Single platform that provides a one version of truth, ensuring compliance with IFRS17 and allowing for actuarial and finance collaboration
- IFRS 17 Business content provided and kept up-to-date by SAP, including Building block approach, Premium allocation Approach, Variable Fee Approach, Level of Aggregation and Support of Liability for Incurred claims
- Contractual Service Margin engine included in the solution
- Availability of pre-defined data models, interfaces, posting logic and other functionalities
- Multi-entity, multi-country, multi-GAAP solution
- Fully auditable solution with drill-down capabilities, lower audit and reconciliation effort; reliable and live reporting on granular data
SAP is the only software vendor able to offer a mature and market-ready solution to insurers to support IFRS 17 requirements
“SAP Insurance Analyzer allows New York Life to support an enterprise-wide financial transformation…offer us agility and real-time insight, which allows us to adopt a ‘transformation mindset’ that helps us make strategic decisions.”
Randy Gonzalez, Vice President and Head of Finance Transformation, New York Life.
19 of the top 20 insurance companiesuse SAP software globally:
Ten of the top 10 composite insurers
Nine of the top 10 life insurers
The top four reinsurers
5,000+ Insurance customers using our solutions
500+ Core insurance customers in all lines of business
1st Full Insurance end to end Cloud Solution
21% Lower compliance and risk management FTEs in organizations with full visibility into key risk indicators
19% Greater productivity in Organisations that establish standardised, transparent reporting.
25- 30% Reduction in IT run costs of accounting, reporting and insurance management (source: Accenture)
40-80% Efficiency savings
(source: SAP collaborative value assessment)
21% Better perceived risk mitigation for organisations where shared services support all possible business units and locations
15- 25% Lower audit costs in Organisations that streamline financial processes
Instead of seeing regulatory change as disruptive and unwelcome, there’s a growing case to say that something like IFRS 17 can actually unlock a lot of benefits to insurance businesses. It’s all about how regulation is managed and your choice of partner when getting compliant.
Many companies have a tactical plan to respond to the requirements. But the best success will be realized by companies that form a broader reporting strategy that includes IFRS 17. Instead of responding, they’ll already be prepared to take advantage of the new rules.
Insurers need to bridge the gap between their transactional systems and finance applications. A simplified, streamlined approach will generate multiple financial variations simultaneously, reducing reporting efforts.
An IFRS assessment will have one of our account executives discuss your system landscape, looking at all key systems, integrations, and data flows and identify the gaps in relation to IFRS.