IFRS-17 Regulatory Compliance

Our IFRS reporting solution

Summary

The IASB (International Accounting Standards Board) had issued new standards for financial reporting specifically impacting how the insurance liabilities and expected cashflows are projected. The IFRS 17 is set to replace the current standards of IFRS 4 effective from January 1, 2023. This requirement, while standardizes income statements for investors benefit, creates tremendous system impact to be complied upon for the insurers.

Solution

Capgemini has had several success implementations of IFRS-17 enablement across various complexities between localized system and with that of the cloud helping insurers comply to the latest of standards.

Capgemini uses a state-of-the art cashflow generator that takes into account the risks due to policy lapses, possible claims and other factors recommended in order to accurately generate expected cashflow projections. In addition, Capgemini’s model computes the necessary parameters including contractual service margin and earnings based on each policy life cycle and tenure. Capgemini’s end to end solution considers changes to the general ledger and reporting systems and improves the existing risk engines in sizing and performance.

The data quality standards and reporting granularity are upheld by Capgemini’s data model specifically architected for IFRS-17 requirements that enable api driven interfaces to transactional systems to facilitate the new way of journal entry bookkeeping. Capgemini will handle all your data conversion needs including the additional information and history that will be required.

No solution is complete without the organizational change needs. Capgemini is happy to help with training, manuals, workflows and other support to facilitate the close interactions between actuarial and finance departments. We understand the time sensitivities placed on personnel and will help you to successfully complete are required disclosures within 10 working days after accounting period close.

Results

Capgemini successfully drives end to end transformation system of the general ledger and book keeping to be IFRS-17 compliant and have serviced Top Fortune 100 firms with the 3 pronged solution to effectiveness: the cashflow generation engine, IFRS-17 specific data model, and scalable SME and implementation support.

IFRS-17 related leading questions

  1. What are the difficulties you face in adhering to the IFRS-17 compliance standards?
  1. Do you find difficulty in standing up the calculation engine to be fully configured to be able to compute the risk adjusted cashflow projections for each groupings across various what-if scenarios accounting for variables such as interest rates, mortality table changes, fees and taxes? If so, what is the plan to work through changes required to be compliant.
  1. What are the steps taken to be prepare your data infrastructure and processes to support enough granularity for IFRS-17 computation across data availability, computational requirements and reconciliation processes.

Summary of wholistic compliance offer

The Offering

  • A comprehensive end-to-end solution for all compliance reporting including bureau, statistical, regulatory, ad-hoc, state-DOI data calls reporting solution. The solution includes: Statistical, IFRS-17, LDTI, CMS2, Medicare Section111, MSP, NCCI, WC-POLS, Bureau, FHIR standards, and other regulatory reporting.

Value Proposition

  • 66% savings on operating expenses associated to stat and regulatory submission processing and savings from impact of new system implementation or modernization platforms
  • 45% Reduction in rework and manual filing submission processes
  • ROI from year-1 upon operationalizing reporting processes

Key Platform / Technologies utilized

  • Line of business specific regulatory data model
  • Reconciliation and adaptive error correction with ai
  • Accelerators with Guidewire for data extraction and custom data enablement across popular policy and claims administration platforms

Target Audience

  • Compliance and regulatory reporting unit

 

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