Financial services firm EY and software corporation SAP have developed a new solution to help re/insurance companies transform their data, systems and processes to comply with new international and US reporting standards.
From January 2022, IFRS 17 and US GAAP Long Duration Targeted Improvements (LDTI) will fundamentally change how re/insurers disclose assets and liabilities, which could impact all aspects of reporting processes.
In response, EY and SAP have collaborated to provide standardised IFRS 17/LDTI financial analytics content, delivered in the SAP Analytics Cloud solution.
The solution includes real-time dashboards of key financial performance drivers under the new standards, and can be offered standalone or combined with related SAP products and EY insurance suite for SAP.
“These new standards are about more than compliance,” said Isabelle Santenac, EY Global Insurance Leader. “They will require organizations to modernize – not ‘just’ modify – their existing systems.
“The challenge is to integrate those finance, risk and actuarial functions throughout an organization. The collaborative effort between EY and SAP helps the insurers to better project their performance in the new IFRS 17/LDTI world,” she explained.
Toni Tomic, SAP Global Head, Insurance Industry, also commented: “IFRS 17 is likely to be one of the most disruptive changes to the insurance industry. The EY and SAP approach will help insurance organizations better address the new standards as well as identify opportunities to transform their operating models, along with transforming their finance, risk and actuarial functions in their businesses.”
