One of the key drivers of IFRS17 is to standardise reporting and make it easier for investors and shareholders to understand business performance.

Though IFRS17 doesn’t go live until 2023, management teams, boards, analysts and investors will want to know well in advance what the most critical KPIs will look like, what is the impact and what are the drivers.

The new standard will bring significant change to the KPIs and management reporting packs used to value your business. There are new measures that need presenting in the right way and, going forward, you will need to ensure your teams are enabled to thoroughly explain the business performance as measured under IFRS17.

Reporting for IFRS17 will not be straightforward. There are many ways to dissect the numbers, and Finance and Actuarial teams will want immediate access to view the data in their own way, together with integrated tools for ad-hoc analysis and other reporting.

Firms should also be aware of additional complications, such as insurance finance expenses, OCI disaggregation, hedging, IFRS9 and Reinsurance.

At our April IFRS17 webinar, we were keen to find out how firms were advancing against these KPI and reporting challenges.

IFRS17 Key Performance Indicators and Reporting

Not yet started – 18%

Firms that haven’t yet started are likely to be at early stages of their IFRS17 journey, and following the recent delay of the standard, are likely prioritising other areas of the project ahead of performance and reporting.

Legerity promotes a right-to-left approach to IFRS17. A lot of enterprise-level programs will start with the data. At Legerity we believe, if you start with the reporting, you can simplify and make clear the accounting needed to support the reporting and the calculations, giving you a clear picture of the data that is required.

We encourage clients to start with their reporting requirements and work backwards through accounting and calculations to the data.

 

Started, but early stages – 53%

The majority of our audience have started to define their IFRS17 Key Performance Indicators, but still have a long way to go.

We would recommend that, when you are moving into the implementation stage of your project, you consider KPIs and reporting as part of a right-to-left methodology.

 

Advanced – 16%

Those at advanced stages of performance measurement will be looking at how they can leverage the IFRS17 data for data visualisation, drill-down and creating dynamic views of the information.

These firms will be considering the different roles within the organisation and externally, how these stakeholders access the information and whether they need additional training on the new metrics.

Integrated BI tools will likely be the most widely used reporting delivery mechanism – including the CEO talking to the investors and shareholders, the CFO briefing external and internal stakeholders, and the controller and the analysts supporting the C-suite and extending that information out into the wider company.

 

Not sure – 13%

Understandably, a small section of the audience would be unclear on the status of their reporting. These firms could be considering complex, multi-year transformation programs, rather than just IFRS17 compliance, and may not have explored every aspect of the standard yet.

 


 

Do you know which group your firm falls into? Do you know how to progress your IFRS17 KPIs?

Legerity can help insurers achieve their IFRS17 goals, from a minimum compliance approach to full finance transformation.

Available on the Cloud and pre-configured for IFRS17, Legerity FastPost can help insurers accelerate their programs.

Contact Legerity today to discuss your program with our IFRS17 experts.