The January 2023 deadline for IFRS17 is fast approaching and identifying an effective route to IFRS17 compliance is now on the critical path for many Insurance firms.

Whether projects are just starting or in full flight, there are still many hurdles to overcome, including Transition, Reinsurance, Allocations, Disclosures, Data and Technology.

In a recent webinar, we asked an audience of 300 insurance specialists what the biggest risks are to their IFRS17 projects not being ready for January 2023.

This could have been one of the respondents own projects or a project they are advising on. The aim was to look across the insurance industry and at all activities relating to IFRS17 delivery, so we allowed the audience to pick multiple responses.

Not Started or Early Stage 48%
Current Project Stalling 17%
Data Issues 56%
Resource Issues 50%
Lack of Executive Support 17%

Not Started or Early Stage

Nearly half of the audience are yet to start or at an early stage in their projects. Unsurprisingly they see this as a real risk. Firms that haven’t started should be mobilising ASAP as there is a real danger of not delivering compliance in time for January 2023.

For these firms, software vendors like Legerity are well placed to help. Our tried and tested SaaS delivered IFRS17 solution, FastPost Express. FastPost Express delivers everything you need to be IFRS17 compliant, quickly, and out of the box, significantly reducing your implementation time, costs and delivery risk.

The IASB stated that there will be no further delays to the standard, so Insurers shouldn’t rely on potential extensions.

Current Project Stalling

Current projects might be coming up against certain challenges, and almost one fifth of the audience responded that they have projects stalling. We covered some of the implementation issues that cause projects to stall in our recent General Insurance webinar.

IFRS17 is a complex accounting standard. We are increasingly seeing firms struggling to complete in house builds for IFRS17 and are now looking for an alternative route –a Plan B. Software firms like Legerity, who have completed a number of IFRS17 implementations and have clients in dry runs are able to provide valuable IFRS17 SME knowledge and practical implementation experience together with pre-configured Cloud based solutions to plug gaps in internal builds or replace altogether.

Data Issues

Data is always a common challenge within IFRS17 projects. Detailed IFRS17 solution design needs to accommodate multiple data sources including actuarial, finance, policy and administration systems, economic and reference data.

Getting data integration right is fundamental to enabling a robust IFRS17 solution that not only delivers compliance but is a key building block for enabling future digital transformation and business agility.

Resource Issues

IFRS17 projects require full-time project resources, plus SME business and technical resources that can be called upon periodically to contribute to the requirements, design, and testing of the solution. Experienced IFRS17 resources are scarce and usually expensive. IFRS17 skills will continue to be in demand right up to the 2023 deadline. Securing the right resource or IFRS17 partner is critical to managing your delivery risk.

Lack of Executive Support

Regulation and compliance are viewed by many executives as a costly overhead with little business value.

However, IFRS 17 presents a unique opportunity for Insurers to invest in and update their back-office technology and data eco systems, to deliver transformational business and operational benefits. Those firms that embrace the opportunity now will be in a strong position in the future.

Legerity encourages these firms to consider how to derive the most business value from these complex change programs and securing executive support.

The key messages from the poll results were that many projects are still in the early stages, with significant challenges around data and resourcing. To view an online recording of our IFRS17 webinar, How to Implement IFRS17 for General Insurance, please click here.

Legerity FastPost recently won the IFRS17 Solution the Year award from Insurance ERM, a highly prestigious award given by an independent panel of Insurance industry experts.

Legerity was named a Category Leader in the Chartis Research report, “IFRS17 Technology Solutions: Market and Vendor Landscape 2020,” a report that assesses leading vendors of IFRS 17 solutions.

FastPost Express for IFRS17 gives you an enterprise grade IFRS17 solution, preconfigured, and SaaS delivered, from a team with a track record of success.

Contact Us

To find out more about Legerity FastPost, our IFRS17 Foundation solution, or how we can support your organisation on its finance transformation journey, please get in touch at info@legerityfinancials.com.

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