KPMG, SAS and Allianz launch joint IFRS 17 Express solution
From 2023, insurance companies must have implemented the IFRS 17 standard. Now, three service providers are offering a joint express solution: The process comes from KPMG, the technology from SAS and Allianz has already tested the methodology used worldwide.
Insurance companies must have implemented the International Financial Reporting Standard (IFRS 17) by January 1, 2023. A challenge for insurance companies that want to fulfill this obligation with in-house developments or purchased "empty box" solutions. KPMG and Allianz, together with SAS, a leading provider of analytics and AI, have now presented a solution that is designed to significantly accelerate the path to IFRS 17 compliance.
According to a statement released by SAS, the solution combines KPMG IFRS 17 Express "KPMG's extensive experience on the topic with SAS' market-leading analytics technology and a methodology that Allianz has successfully tested globally." The solution, he said, builds on SAS for IFRS 17 and offers a cost-effective approach that is designed to significantly reduce the effort required for recalculations under IFRS 17 through preconfigured options for automation and integration, according to the statement. "No one has to reinvent the wheel, let alone do duplicate work," said Christian Knoller, IFRS 17 project manager at Allianz. "Insurers can rely on using predefined IFRS-17 methodology and technology here, mapping the expertise of three market leaders."
One focus of KPMG IFRS 17 Express is to facilitate collaboration between actuarial, risk management and finance departments. To this end, the following functions are implemented in the solution:
- Fully functional calculation and accounting engine according to IFRS 17 standard for contract margins, including past, current and future reporting periods.
- Predefined data models and comprehensive booking options designed to manage a wide range of insurance and reinsurance products available worldwide.
- A structured workflow process within a single, integrated platform that ensures traceability, auditability, and transparency.
"The IASB amendments to IFRS 17 were intended to facilitate implementation. But the pandemic has slowed down compliance projects. As a result, many insurers are not yet where they want or need to be," says Mary Trussell, Insurance Accounting Change Lead at KPMG International. "By combining the technology and expertise of three global leaders, KPMG, SAS and Allianz, insurers can make up for delays and skills gaps and significantly shorten their path to IFRS 17 compliance," Trussell continues. "IFRS 17 is changing the way insurance companies calculate, manage and report on their financial exposures and risks," adds Troy Haines, senior vice president of risk research and quantitative solutions at SAS. The combination of expertise and practical IFRS 17 experience from SAS, KPMG and Allianz gives insurers of all sizes exactly what they need: a fast and sustainable solution for IFRS 17 compliance and a clear path for future growth.
Source and further information: www.sas.com/ch
