Series 1 - Business case and project planning for Asia
Effective for annual periods beginning on or after January 1, 2021, insurers will be required to bring additional transparency, granularity and comparability to the stakeholders according to the IFRS 17 requirements. This is specifically for life insurers expected to have fundamental impacts to how insurance companies measure the insurance contracts, and to disclosures, reporting and presentation of financial performance. In addition, it is for insurers who expect fundamental change to their Finance and Actuarial organizations to fulfill these requirements and beyond.
While the IASB’s effective date is just over 3 years for insurers to implement the new requirements, a simulation and parallel run of the IFRS 17 production before the effective date would be desirable, which potentially pushes a “readiness date” as early as 1 January 2019. This leaves less than 2 years for insurers to prepare for the upcoming changes. This paper summaries our experience on developing business cases and implementing project planning in the past 6 – 9 months for the subject owners, project leaders and other stakeholders in the insurance space in Asia who are impacted by the implementation of IFRS 17.
PwC has conducted a survey of some of the larger life insurers in Asia in mid-2017 to understand the status with reference to different stages of IFRS 17 implementation.
Figure: Distribution of the larger of life insurers in Asia in IFRS 17 implementation
The above recommendation is derived from researching solutions from FIS, Milliman, WTW, SAP, Oracle, CCH Tagetik, Aptitude and SAS which either has significant presence in the Asia and/or actively participating in the IFRS 17 implementation discussions/RFPs.
A watch list of solutions and vendor, and a comprehensive research on solution functionality and comparison is developed for client sharing and discussions with PwC