Evaluating the Challenges Faced by Insurers in IFRS 17 Implementation
In this article, Addactis’ experts point out 4 main difficulties for insurers in the implementation of IFRS 17.
Read our analysis on insurers’ challenges and learn how Addactis can tackle them.
First Difficulty: Initial Stages of Implementation
In the preparatory stage: IFRS 17 is set to enter into force at the beginning of 2023. While some insurance companies are at a very advanced stage in the implementation of IFRS 17, there are still some insurance companies that have not yet decided which IFRS 17 solution to use.
Second Difficulty: Minimal Compliance Approach
Many insurers initially took a ‘minimal compliance’ approach to IFRS 17.
As the implementation process progressed, insurance companies realised that the change and investment needs required to complete this process were more than they expected.
Third Difficulty: Managing Increased Data Volume
The main IFRS 17 challenge for insurers lies in the increasing data volume and the need to properly manage complex and interrelated system environments, in line with new accounting policy preferences, and obtaining the right level of reports.
Fourth Difficulty: Changing Roles and Responsibilities
In this process, one of the issues that is not given enough attention and care is the changing roles and responsibilities with the entry into force of IFRS 17.
Actuaries and accountants will assume different roles in the closing process than they currently do.
Many insurance companies face pressure to maximise the benefits from their investment in the systems they have installed to comply with IFRS 17 relating to insurance contracts.
Overcome IFRS 17 Implementation Challenges with Addactis
addactis® IFRS 17 solution
Because you can’t afford to be late, reducing the implementation time and meeting the application deadline is the vocation of the addactis® IFRS 17 “out-of-the-box” solution.
Addactis provides you with an end-to-end solution that covers both the actuarial and accounting aspects of IFRS 17: a proven solution for a controlled budget.
Being able to integrate within your existing systems is the major asset of our solution, both upstream, thanks to our ETL, and downstream thanks to our integrated subledger.
IFRS 17 Project Management
Learn more about IFRS 17 Project Management and the key roles of project stakeholders by reading our e-Book “How You Will Crash Your IFRS 17 Project”.
Related content on IFRS 17
Challenges and best practices for a successful IFRS 17 implementation project
As insurers embark on the IFRS 17 journey, they encounter multiple challenges. Whether you are an early or late adopter, read our IFRS 17 benchmark and unlock expert insights for a smooth implementation.
Ready to start your IFRS 17 compliance journey?
You deserve an IFRS 17 solution provider who understands your actuarial, IT, financial and accounting issues.
Get an overview of our out-of-the-box solution in video, and find out how addactis experts can support you and help you with your IFRS 17 project.
How You Will Crash Your IFRS 17 Project
Welcome to the IFRS 17 adventure! You are moving from being an expert to an adventurer, becoming a pioneer of the new standard. What are the pitfalls that await you? Read our paper and start your IFRS 17 journey.