Swiss Re has entered into a strategic co-innovation partnership with SAP SE, a German multinational software corporation, in order to address the increasingly complex demands of global regulators in the areas of financial steering and reporting of insurance companies.
In a statement, the global re/insurer noted that re/insurers are faced with the challenge of maintaining compliance and consistency in managing and reporting business to a wide range of varying valuations and regulatory reporting standards.
New regulations, such as the International Reporting Standards (IFRS) 9 and 17 which will impose additional reporting requirements, also add to the challenges insurers face, Swiss Re continued.
These challenges, the re/insurance giant said “make it difficult for insurers and reinsurers to capture reliable, comparable financial information for reporting and decision-making,” as well as “significantly increase internal process complexity, reporting efforts, and operating costs.”
To tackle these challenges Swiss Re and SAP are working on a new approach to generate multiple valuations and apply financial steering methods based on the SAP HANA platform to enable processes to be “automated and controlled in a simple, effective way.”
The new approach, which Swiss Re said will be made “available over time to the entire re/insurance industry,” will allow re/insurers to:
Manage increasingly complex regulations and be able to easily incorporate new valuations and reporting standards (such as IFRS and U.S. GAAP) on an ongoing basis;
Reduce their reporting efforts by generating multiple financial valuations simultaneously;
Reduce the time they spend on operational tasks and controls, while increasing their capacity for analytics; and
Be able to steer the allocation of financial resources,
Gerhard Lohmann, CFO reinsurance at Swiss Re, said: “We chose to work with SAP on this initiative, because it is a renowned software provider with a long and deep history of working with global insurance companies. I genuinely believe that together we can achieve our strategic vision to enable integrated steering and reporting for ourselves and across the industry.”
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