- IFRS 17
- News and Views
- IFRS 17
- News and Views
IFRS 17 Implementation Timeline - How MBE Can Assist
To assist companies in ensuring that they are prepared for the IFRS 17 go-live date, MBE has proposed a high level checklist of activities to complete in the countdown to 2021.
If you would like to discuss how to approach any of the activities below, please contact us.
Regardless of where you are in your IFRS 17 implementation programme, MBE will utilise its core specialist skills across actuarial and risk management, IT solutions and process improvement to ensure that your IFRS 17 implementation is efficient, effective and profitable.
All areas of MBE’s expertise will be engaged in the impact analysis, whether this is an initial high level assessment or a detailed analysis, to determine gaps in methodologies, processes and systems and the associated costs of these gaps.
Actuarial Expertise - the IFRS 17 Insurance Standards are principle-based, and will require interpretation and judgement as they contain a variety of options that insurers will need to assess.
MBE can provide technical assistance in understanding the standards, assessing the options available to insurers, and facilitating the integration of new methodologies including:
- IFRS 17 modelling approach
- Level of aggregation/grouping of contracts
- Approach to amortising the Contractual Service Margin
- Methodology for Risk Adjustment and discount rate
- IFRS 17 transitional approach
Operational Excellence - it is expected that the timeline for reporting will become more onerous, with co-ordination and co-operation between Actuarial, Finance and Risk teams becoming more important than ever.
MBE can assist in reengineering process and operations, identifying key areas for improvement to reduce the impact of the new regulations on resource requirements.
Areas where IFRS 17 will require operational efficiencies to manage resources and timelines include:
- Additional disclosures, in terms of amounts, judgements, risks and transitions
- Increased reconciliation requirements
- Reporting at a more granular level
- Changes to reporting templates, internal controls and audit trails
- Additional calculations to be performed
Technology Solutions - with the need to adjust system modelling functionality and increased data storage requirements, MBE can review the current modelling framework, hardware and IT setup, advise on optimal system solutions and use modelling possibilities to improve runtime, clarity and consistency.
Technology solutions will be required for:
- Increased storage requirements for historical yields curves and the increased granularity of reporting
- Contractual Service Margin calculations – whether this be new systems or changes to existing
- Tracking of Contractual Service Margin and Loss components
- Optimising Actuarial, Accounting and Risk system interfaces for increased reporting requirements
- Automated controls and audit trails for increased granularity of reporting and reconciliations