Middle East Insurance Industry is getting accustomed to local and global trends that are largely affecting the key growth dynamics of the insurance sector. Insurance companies are expanding both in terms of geographical and business verticals and improving their processes to increase their intrinsic values.
IFRS 17 has gained predominance with ever increasing growth of the insurance sector as an operational gap analysis to standardise insurance accounting globally to improve comparability and increase transparency.
BADRI continues to be a market leader in connecting knowledge & exceptional services with its skilled resources. We take this opportunity to welcome Gautham Subramanian who has joined as IFRS17 Practice Lead at BADRI. Gautham is a qualified Fellow of the Society of Actuaries (FSA) and Chartered Enterprise Risk Analyst (CERA). He possesses extensive international market exposure of working with Middle East, North American and other diverse markets. He brings with him an extremely valuable experience of working and particularly consulting some of the renowned companies worldwide. His last assignment was working as an Associate Director at Willis Towers Watson – Canada focusing on IFRS 17 implementation for leading insurance companies in the North American markets.
Gautham’s multicultural experience along with international market insight has allowed him to efficiently build people and work synergies. Through his extensive knowledge base has been able to leverage enterprises towards sustainable growth and risk management strategies. At BADRI, Gautham will be leading BADRI’s IFRS 17 market expansion into Middle East and other territories.
We are one of leaders in the MENA markets in providing end-to-end IFRS-17 solutions, implementing IFRS-17 for a several companies. We offer a one-point solution both from an accounting as well as actuarial perspective to get our clients IFRS-17 ready, so our clients need not look any further. Our solutions not only ensure compliance with the respective regulatory road map for IFRS-17 but also ensures the senior management and the board have a reliable partner who can partner with them in this journey. Our reputation means that we only collaborate with some of the top IFRS-17 solution vendors as our implementation partners. This means our clients get the best of both worlds, a top-class IFRS-17 solution, and a trusted partner both from an accounting and actuarial standpoint to implement the solution. Bottom line, our clients are ready and compliant with the new financial reporting requirements by January 1, 2023.
Is your organization ready for IFRS 17 Implementation?
To have planned approach towards an efficient IFRS 17 implementation, organizations need to have a clear and definite roadmap in place. IFRS 17 is a much wider concept than financial reporting rather it encompasses risk management, asset liability management & actuarial valuation. It is indeed a valuable opportunity for organizations to create their workforce of the future. The transformation reporting would also allow a transparent framework for the stake holders as well to be informed and updated.
BADRI has been actively involved in the IFRS 17 consultation space with several clients in the UAE and KSA where we are also assisting them with ensuring compliance with the regulatory road map for IFRS 17 implementation which includes financial impact assessments and parallel reporting.
Likewise, we are working in collaboration with some of the top IFRS 17 solution vendors as implementation partners to assist our clients in ensuring that they are compliant with the new financial reporting requirements by January 1, 2023. Some of the major service verticals we are involved in is as mentioned below:
• Company’s Current State and Readiness Analysis:
• Quantitative Impact Analysis
• Data System and Technology Review
• Managed Service Solution
• IFRS 17 Solution License and Implementation
• Regulatory Submission
IFRS 17 System Selection:
Different kinds of System:
1. An end-to-end system or
1. An accounting reporting engine only.
Important factors in selecting a system:
The standard offering by most good solutions ranges quite a lot – these vary by the brand name of the solution provider and, the solution implementation partners.
1. The Resources
The UAE market has upwards of 60 insurers very few of which may have in-house actuarial staff in such cases getting an end-to-end solution may not make sense unless you plan to develop in-house capabilities for the actuarial calculations.
1. Mix & Match
As there is an abundance of flavors available in the accounting section of the IFRS 17 ice cream parlor, however, very few in the end-to-end suites – it is possible to mix and match actuarial and accounting systems.
1. The Right Partners
IFRS 17 is a new standard – with the effective date being set for 2023 and beyond. All systems and their sub-variants are new, and we are unaware of any completed implementation especially across any GCC insurance company.
Is it the System Selection or the Input Data?
In terms of data requirements, all solutions irrespective of type or provider are very similar in what they need as input data. This may seem very counter-intuitive if you have come across the data requirements for one or two solutions but dive deep and it is all the same.
The key to surviving in the deeper data depths of IFRS 17 is having internal resources being able to recognize what IFRS 17 requires. People with the attitude that a system will do everything for you at the push of a button are in for a rude awakening! The deeper requirements bring with them more challenging reconciliations