When multiple departments are involved in such a time and resource-intensive task, it’s crucial to orchestrate and optimize processes. This is especially relevant to reporting of expected and actual cash flows and metrics. The result is closer collaboration among actuaries, finance and IT. In addition, it ensures consistency in common data, enables comparability of data, and eases reconciliation of results. Such an integrated framework approach provides a single source of data for both risk and finance calculations, as well as more specific calculations. Consider connecting existing underlying technology components with various business components that also share functional capabilities and data. One way for insurers to ease compliance efforts is to implement an analytical framework that integrates risk and finance functions. Tip 1: Integrate risk and finance analytical frameworks Starting with what you have is the first of four suggestions to help ease the challenges of compliance. All must work within the constraints of processes and systems that are already in place. Insurers are not starting on a green field, of course. 4 tips to help insurers address the challenges Ideally, this integrated approach will be based on an open and scalable platform that runs in the cloud. One key to success is an integrated environment for managing, auditing and tracing all steps of the IFRS 17 or LDTI compliance process. Accounting and reporting systems must evolve to accommodate these changes. To support new processes, insurers will need new actuarial calculations, a new structure of accounts and key performance indicators. What’s required for success?īoth IFRS 17 and LDTI will have a significant impact on financial performance, operational processes and data. Using a comprehensive, governed platform that runs in a trusted cloud environment is a way to adapt quickly while unlocking business value from these regulatory reporting requirements. Complying with upcoming IFRS 17 and LDTI standards will entail many changes for insurers – including new valuation approaches for contracts and substantial changes in basic financial reports.
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