In this article, we will discuss about the critical steps insurers must take for a successful IFRS 17 implementation, including gap analysis, data readiness, and system upgrades to ensure compliance with the new standard.
Early Phase Implementation Considerations and Impact on Existing Systems and Processes
Essential Steps for a Successful IFRS 17 Implementation
In the early phase of IFRS 17 implementation, insurers need to prioritize several critical aspects to ensure a smooth transition. Conducting a thorough gap analysis helps to identify discrepancies between current practices and the new requirements.
This analysis provides the basis for a comprehensive implementation roadmap.
The assessment of data readiness is also crucial to be addressed during the early phases of the program so as the entity to ensure that their data collection and processing systems can handle the increased granularity and volume of data required by IFRS 17.
The implementation of IFRS 17 usually is accompanied by significant upgrades to existing systems and processes.
Insurers invest in advanced software solutions capable of handling the complex calculations required for compliance with the new standard.
These systems need to manage and integrate large volumes of granular data, ensure real-time processing and workflow capabilities, support comprehensive reporting requirements.
Filling the gap in the systems while at the same time leveraging as much as possible the existing infrastructure and processes has been proved to be the key for many successful implementation projects.
So, the key aspects that insurers must prioritize for a smooth IFRS 17 implementation:
Conduct a thorough gap analysis
to identify discrepancies between current practices and IFRS 17 requirements.
Assess data readiness
to ensure systems can handle the increased granularity and volume of data.
Upgrade systems and leverage existing infrastructure
to manage complex calculations and comprehensive reporting requirements.
How addactis® IFRS 17 Solution Can Help
Addactis offers a comprehensive IFRS 17 solution designed to help insurers navigate the complexities of the new standard. This robust software suite simplifies the implementation process through automated calculations for all the measurement models.
It seamlessly integrates with existing systems, ensuring that data management is streamlined and efficient. Addactis IFRS 17 solution provides real-time reporting capabilities, enhancing the accuracy and timeliness of financial statements.
By reducing manual interventions and improving operational efficiency, Addactis solution helps insurers achieve compliance in a cost-efficient way and at the same time upgrades the overall quality of financial analysis and reporting.
Solutions like addactis® IFRS 17 are playing a critical role in facilitating a smooth transition, helping insurers to meet the new requirements efficiently and effectively.
Addactis IFRS 17 Hub has led more than 50 IFRS 17 implementations around the world in recent years, during which its experts have acquired solid and recognized expertise to support insurers on their IFRS 17 journey.
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.
Discover addactis® IFRS 17 solution by watching the full video below:
This content was written by our expert:
Harry Nikolaou
Head of Accounting IFRS 17
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