Time is ticking for insurers worldwide as IFRS 17 implementation fast approaches. January 2021 might seem far away, but insurers are starting to feel the heat as they come to terms with the changes they’ll need to implement in order to comply with the “major overhaul” of insurance accounting requirements.
Insurers worldwide are tasked with wading through “a great deal of complexity” in a “very short amount of time” in order to meet IFRS 17 requirements, explained Walter Rondina, partner, Advisory Services, KPMG in Canada. The new standard has the potential to impact all aspects of an insurance business, from finance and actuarial to actual data and systems.
KPMG professionals are working together with insurers as they prepare for the IFRS 17 deadline and have now joined with Aptitude Software to make the path easier and faster in many cases. Aptitude Software offers a pre-configured solution that covers a number of new processes that will be required for IFRS 17.
“Our alliance with Aptitude Software will really help insurers by cutting through the complexities and time pressures that come with IFRS 17,” Rondina told Insurance Business. “Aptitude Software has a niche with respect to finance and accounting transformation. They’ve worked through various IFRS standards, helping large companies with huge amounts of transaction. They have a proven solution in terms of scalability, their overall approach, and successful past implementations from an IFRS perspective.”
The requirements of IFRS 17 are broad and can impact virtually all aspects of an insurer’s business. Combined with the short time window for preparing, insurers can benefit from taking an approach that looks at the linkages and dependencies across their business.
Insurers need to “start early” with their IFRS 17 implementation, Rondina stressed. Getting a good grasp of the wide-reaching implications of the standard is important, especially with regards to impacts upon internal data and systems. That’s where the “real messiness” is likely to occur, he added.
“Every country’s in a similar state with regards to IFRS 17 implementation in that there are some laggards and some trailblazers,” said Rondina. “Some Canadian insurers are quite far along in terms of grappling with the impacts of IFRS 17 and organizing implementation, but there’s also a huge chunk of the industry who have been lying in wait and must now start to activate.
“KPMG’s collaboration with Aptitude Software is very synergistic. We’re working together to provide transparency and fluidity for our clients in this period of change. Together we’re bringing a solution that cuts through the complexity and cost implications of IFRS 17. We see that as a win-win for all parties.”