CARY, N.C., Nov. 14, 2018 /PRNewswire/ -- While the new International Financial Reporting Standard 17 (IFRS 17) will take effect Jan. 1, 2021, insurers should start preparing now. Among those getting a head start is global property/casualty and health/life reinsurer Gen Re, headquartered in Stamford, Conn. Gen Re is using SAS® to create a comprehensive platform that covers all IFRS 17 requirements.
"We were looking for a platform that we believed could help us comply with IFRS 17 but also which could potentially provide leverage for future global efficiencies," said Edward Nosenzo, North America Chief Financial Officer at Gen Re.
Gen Re will use SAS Regulatory Content for IFRS 17 to meet all the mandates of IFRS 17 in a single, comprehensive compliance environment. The new solution is built on the same flexible, high-performance analytics platform that is helping insurance firms meet Solvency II and helping the banking industry tackle its own regulatory disruption in IFRS 9.
Deployed from a central location, the end-to-end framework will help Gen Re cover every step of the new standard, through to the required accounting methods, and provide granular, auditable financial reports.
What is IFRS 17?
International reporting standards set common accounting guidelines for the preparation of financial statements, making public companies more comparable globally. Billed as the first truly global accounting standard for insurance contracts, IFRS 17 will replace the current standard, IFRS 4, and increase financial transparency.
The new regulation will change the way insurers calculate liability and report profit and loss. And it requires insurers to report in greater detail how insurance and reinsurance contracts affect finances and risk. For most insurers, compliance with IFRS 17 will require significant investment in new or upgraded technology.
"IFRS 17 poses challenges that insurers should be careful not to underestimate. This requires careful planning. The earlier they get started with the technological restructuring and reorganization of their workflows, the better," said Robert Stindl, SAS Director of Risk Solutions for North Europe, Middle East and Africa. "The SAS Platform ensures that all parties – actuaries, risk managers and accounting specialists – can collaborate seamlessly and establish maximum transparency to ensure compliance."
Preparing now for future compliance
Implementing the IT architecture required for IFRS 17 compliance will be a serious undertaking. To help the industry prepare, the SAS Customer Connection for IFRS 17 will convene in Frankfurt, Germany, Nov. 29-30. The event will gather leading insurers, including Gen Re, Munich Re, ERGO Group and Basler Versicherung, to discuss best practices for meeting the new standard.
To learn why insurers should act now to prepare for the new requirements, and the top 10 things to look for in an IFRS 17 solution, download the white paper Insurers: Are You Ready for IFRS 17?
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