Many insurers have now reported their 2023 HY results for the first time. This is clearly a major milestone. However, from our discussion with clients this is being viewed as just the beginning of the next phase of the project. Namely, how to ensure IFRS 17 is fully operational and understood within the business and beyond.
In this phase insurers face a number of challenges to ensure demonstrable compliance whilst they endeavour to drive business benefits from the process.
- Finalising the Project. IFRS 17 processes are, to a degree automated due to granular data requirement, however there may still be scope for the removal of manual process and spreadsheets to ensure an automated end-to-end reporting process. There is also likely to be on-going work with auditors in the preparation to YE23 reporting, where the disclosures are more detailed than those required at HY.
- Embedding within the Business. The knowledge and skill developed within the project teams needs to be transferred to the BAU teams to ensure smooth reporting processes and to ensure that business decisions are taken within the context of IFRS 17 rather than referring to IFRS 4.
- Comparison with Peers. Once IFRS 17 results are published Insurers will be keen to understand how they are interpreted by the market, rating agencies, and also consider how their own results compare to those of their peers.
- Insightful Analytics. Finally, Insurers will now need to consider how IFRS 17 impacts their KPIs and how existing KPIs will need to be adapted and new KPIs, such as CSM, Insurance Contract Revenue are introduced.
How Can Zenith Help?
Our team has a significant amount of expertise having worked on numerous IFRS 17 projects and are available to help you in the final stages of your project whether that be reviewing your models and processes, analysing results, or carrying out comparisons with your peers.
Additionally, Zenith’s new evo-insight solution is designed to deliver governed analytics rapidly into the hands of users. The analytics provide insights into the fundamentals of the business, and not only can we look at current perspectives we can also project metrics and KPIs into future planning periods without having to rerun heavy actuarial models.