Accelerating IFRS 17 Compliance: Tech Solutions for Latecomers

For companies joining the IFRS 17 compliance journey later than others, the path to adherence may seem daunting. However, with strategic planning and leveraging technology solutions, late entrants can expedite their compliance efforts and navigate the complexities of the standard.

By studying the challenges faced by early adopters and harnessing advancements in technology, late entrants can potentially avoid pitfalls and adopt more efficient solutions. They benefit from learning from others’ experiences, enabling them to tailor their implementation strategies accordingly. By now, most interpretation and methodology issues are likely already addressed in the market.

According to our experience, late entrants encounter unique hurdles in the IFRS 17 landscape:

– Time is the primary issue. Playing catch-up means late entrants have compressed timelines to understand IFRS 17 intricacies, assess impacts, and implement necessary changes swiftly.

– Limited time for data gathering, analysis, and system upgrades can hinder compliance efforts and increase the risk of non-conformity.

– Latecomers may lack in-house expertise, manpower, and budget essential for comprehensive IFRS 17 adoption. The new target operating model requires changes in the collaboration between actuaries and accountants.

– Another challenge is the shift in strategic direction halfway through the compliance approach. Starting with a minimum compliance approach, companies realize that the standard’s complexities require more investment than initially estimated.

The good news is that late entrants can now leverage technology solutions to overcome IFRS 17 challenges:

– Agile Data Management is crucial for project success. Solutions offering out-of-the-box templates and automated workflows for data processing, validation, and transformation significantly reduce time spent on this step. Data analytics tools for anomaly detection, trend analysis, and pattern recognition expedite data processing and enhance accuracy.

– Rapid-deployment Actuarial Modeling and integration with IFRS 17 calculations are vital. Actuarial modeling should involve the development of expected cash flows and risk adjustment calculations. The more IFRS 17 calculations are integrated into the solution, the faster the implementation.

– Ready-to-use disclosure templates and seamless integration between the accounting engine and the ERP system are key in the accounting part.

In a real-world case for an Addactis Client, a mid-sized insurer initiated its IFRS 17 compliance project later than industry peers. Facing tight deadlines and resource constraints, the client opted for an end-to-end solution covering the full scope of calculations.

This solution streamlined data processing, enhanced data quality, and expedited compliance efforts. By leveraging automation features for data validation and transformation, the insurance company significantly reduced manual effort and accelerated its implementation timeline.

As a result, the insurance company successfully met compliance deadlines, gained valuable insights into its insurance portfolio, and positioned itself as a competitive player in the evolving regulatory landscape.

In conclusion, despite entering the IFRS 17 compliance race later, companies can expedite their journey and ensure adherence with the standard through technology-driven strategies.

From agile data management to rapid-deployment actuarial modeling and flexible financial reporting software, technology solutions empower late entrants to overcome challenges, mitigate risks, and achieve IFRS 17 compliance efficiently.