Allocations are a key part of the monthly finance process; however, most firms rely on manual, spreadsheet-based procedures that are time-consuming, inefficient and often error-prone.

IFRS17 is a great opportunity to take a fresh approach to how you currently handle allocations, allowing you to implement new procedures and automated processes that both meet IFRS17 and wider finance needs.

At a recent Legerity Webinar Mark Miller, Legerity Head of Client Advisory, commented on the importance of Allocations for IFRS17:

"The importance of Allocations for IFRS17 is in the way the standard is constructed.

Insurers are required to measure their liability from insurance contracts, and all the costs associated with those contracts need to be included in that measurement.

That particular requirement means you will often need to source data that’s not at the contract level. That’s where allocations become really important. Those diverse cost structures and data structures come together into forming this view of the insurance contract, which is so central to IFRS17.”

At the webinar we asked over 250 insurance specialists how their organisations currently perform allocations:

  • Spreadsheets
  • Other EUCs (Access etc.)
  • Purpose-Built System
  • Not sure

The answers were not surprising in that almost 50% of the audience responded that they use either spreadsheets or other EUCs, with around a third of respondents using a purpose-built system.

Legerity has helped many of our clients implement allocations not just for IFRS17 but for their wider finance needs. This has helped significantly speed up the month-end process, reduced the number of errors and improve auditability and control.

Benefits of Legerity FastPost for Allocations:

  • Run multiple allocations types and scenarios
  • Financial and non-financial drivers
  • The flexibility of balance and dimension selection
  • Percentage based allocations
  • Outputs from the allocation process in the form of a balanced journal
  • Iterative and nested allocations
  • Easy to use GUI
  • End to end audit trail
  • Ultra-High Performance via on-demand SaaS

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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London, W2 6LG, UK

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