Swiss Re has completed the first phase of its accounting solution project with Germany-based multinational software corporation, SAP SE.
First announced in February 2017, the system supports multi-GAAP accounting processes for financial instruments and insurance contracts and is able to generate multi-valuations, including International Financial Reporting Standards 17.
“We have combined forces with SAP to create a system based on SAP HANA to address the increasingly complex demands related to financial steering and reporting of insurance companies from regulators across the globe,” said Gerhard Lohmann, Chief Financial Officer (CFO), Reinsurance at Swiss Re.
The core of this solution is a multi-GAAP accounting engine that is complemented by a module supporting the preparation of estimated cash flows, which are provided by actuarial upstream systems.
“The solution will use a simple accounting and steering approach to run multiple valuations concurrently,” added Lohmann.
Further development phases will focus on extending the solution for financial analysis and steering. Planned functionality includes forecasting, planning and simulation for a number of different scenarios.
“We are proud that together with Swiss Re we developed a strategic platform that allows insurance carriers to manage increasing regulatory complexity, while easily incorporating new valuations and reporting standards such as IFRS and U.S GAAP,” said Luka Mucic, SAP CFO and member of the Executive Board of SAP SE.
“With complex regulatory standards on the rise, this co-innovation project will help the industry better support core accounting and steering processes.”