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Filling the Gaps in Knowledge & Know-how Methods Canadian Underwriter

Filling the Gaps in Knowledge & Know-how Methods Canadian Underwriter

IFRS 17 is an accounting normal that may end in an entire overhaul of an insurer’s monetary statements, although finance alone can’t work by means of this complicated change in isolation. Contemplating the importance of the impression throughout the group, IFRS 17 program leaders should interact cross-departmental enter and material experience together with finance, danger, actuarial and knowledge know-how.

The truth is, surveys carried out so far point out that many insurers rank understanding present capabilities of IT methods towards the brand new necessities of IFRS 17 as a extremely complicated, time consuming exercise inside the general IFRS 17 impression evaluation for his or her group.

Partially, that is attributed to the truth that accounting requirements for insurance coverage contracts have been comparatively secure in Canada for a few years, so usually talking, insurers have typically chosen to make modest changes and enhancements over vital alternative and modernization of accounting and insurance coverage contract administration techniques. In lots of instances, IFRS 17 will create a chance to rethink the best way an insurer makes use of knowledge & know-how methods – in different instances, IFRS 17 might, in truth, pressure such modifications.

WEBINAR: The IFRS 17 journey has begun. Register now.

IT leaders charged with the info & know-how points of IFRS 17 compliance might want to assess many choices and determine whether or not new capabilities ought to be “bolted on” to present methods, or if new monetary planning, reporting and integration applied sciences have to be carried out to satisfy necessities that don’t presently exist inside IT right now, together with:

  • Knowledge assortment and transformation: ingesting knowledge from supply methods and getting it to a usable state
  • Knowledge modelling: making modifications to the info in order to adjust to the chosen IFRS 17 accounting coverage
  • Knowledge presentation and reporting: getting ready a full suite of monetary statements together with comparatives and disclosures, in addition to evaluation on knowledge fashions.

With these key capabilities in thoughts, there are additionally many different elements to think about when deciding on the proper decisions for knowledge & know-how issues to satisfy your organizations distinctive necessities, comparable to:

  • The variety of supply methods required to mannequin the IFRS 17 changes – together with the overall ledger, coverage methods and different present company methods and knowledge sources.
  • The quantity and degree of granularity / grouping of knowledge from these methods
  • The extent of actuarial enter and assessment to the fashions
  • The variety of supply or vacation spot methods that have to be up to date for monetary and operational reporting

The ensuing selections to spend money on new or present methods may additionally tackle philosophical overtones – whether or not to take straight ahead strategy to easily adjust to the IFRS 17 normal, or take a extra transformational path via the implementation of latest enterprise processes and know-how techniques. As well as, many insurers are concurrently contemplating new knowledge administration methods that create centralized knowledge that can be utilized to realize compliance, and different functions associated to superior analytics and insights throughout the enterprise.

WEBINAR: The IFRS 17 journey has begun. Register now.

Easy sufficient, proper? The web of it’s that the info & know-how issues related to IFRS 17 might be time consuming and sophisticated – which means that IT leaders ought to start the method early to find out the influence of the brand new normal on knowledge & know-how methods. For a lot of insurers, this might additionally imply looking for outdoors help to speed up the evaluation, and increase inner material experience with business practices and expertise within the subject.

BDO IT Options is the know-how providers division of BDO Canada LLP a number one supplier of professional providers to shoppers of all sizes in nearly all enterprise sectors. Our insurance coverage business staff leverages deep business information of IFRS 17 to ship knowledge and know-how providers required for transformation to the brand new normal. For inquiries or extra info please contact:

Mike Gelesz
Nationwide Business Supervisor – Insurance coverage
BDO IT Options
Daryl Senick
Companion, BDO Know-how Options
BDO IT Options