The core challenge in complying with IFRS 17 is actually a problem of data management.
Dr. Daniel Trzesniak, our Head of Product Strategy and IFRS 17 Initiative Lead, presented his experience in IFRS 17 and data management projects and provided a demo of our solution.
“In our view IFRS 17 is really a data management problem,” Daniel said, explaining that the Vertex platform is designed to address such data management challenges and ultimately provide a process for meeting IFRS 17 reporting requirements.
IFRS 17 is the new global standard for insurance industry reporting. In our partnership with Synpulse, we provide solutions enabling insurers to comply with IFRS 17 requirements while at the same time revolutionizing their data management processes.
“It’s quite a revolutionary solution based on the Vertex technology and consists of an IFRS 17 framework”Anja Friedrich, Manager of Synpulse Schweiz AG
Anja Friedrich, Manager of Synpulse Schweiz AG, hosted the session, and described how Synpulse is bringing implementation expertise and financial and actuarial knowledge to deploying Systemorph’s data management solutions.
“It’s quite a revolutionary solution based on the Vertex technology and consists of an IFRS 17 framework,” Anja said in kicking off the webinar.
Daniel explained that the IFRS reporting platform must be flexible and easily adapted to a particular customer’s business operations, level of data granularity, and chosen IFRS 17 methodologies, such as General Measurement Model, Building Block Approach, Premium Allocation Approach and others.
“I don’t think one standard implementation offered market wide would actually be desirable because here we are dealing with company financials,” Daniel said.
But the high cost of custom-built software can make an IFRS 17 compliance project prohibitively expensive, he added. That’s why the Vertex platform uses modern cloud technologies, Software-as-a-Service delivery and modern software design to provide tailored solutions at a fraction of the cost of custom software.
In his presentation, Daniel related the four key elements of implementing IFRS 17 compliance and an improved data management process:
- Business Process
- Process Documentation
- Report Analysis
- Formula Debug
The key to revolutionizing data management and complying with the standard is to establish a business process for data management and reporting that is consistent and repeatable but also flexible, Daniel explained.
The process needs to reflect the needs for data gathering across many different parts of the organization, aggregating and analyzing the data, and generating the reports needed for IFRS 17 compliance using the desired methodologies.
Daniel demonstrated how the Vertex platform allows very easy definition and creation of a new data reporting process. The administrator can design the required data gathering, aggregating, analysis and reporting steps, and ensure the appropriate validation checks and gates are place at each stage.
Tasks can be assigned to users of various roles within the data gathering hierarchy, creating a clear set of dependencies aligned with the overall reporting process.Sign-offs required for data checks and validation can be set and required as needed for the organizational structure and roles.
Once the IFRS 17 reporting process is designed an activated, an essential element is for users to collaborate and communicate as they gather, analyze and report data.
In the demonstration, Daniel showed the user collaboration features of the Vertex platform, including the ability for users to attach comments to data, ask questions of other users and respond to such questions. The system also offers powerful versioning that permits a user to drill down into the context of data to understand what another user was seeing when they supplied particular information or comments.
“ …I think just exchanging emails is not what we should aim for here.”Dr. Daniel Trzesniak
This type of efficient and streamlined communication is a best practice for IFRS 17 reporting, he said. “IFRS 17 is something that goes across the organization. It’s not something local, so therefore an acceptable tool should provide all the means to foster this collaboration. I think just exchanging emails is not what we should aim for here.”
An essential output of an IFRS 17 reporting process is of course the reporting itself. The Vertex platform includes highly flexible and intuitive ways to slice and dice the data to arrive at desired reports.
Daniel demonstrated the Vertex platform’s reporting interface that allows reports to be created and customized with a few clicks. “It allows you to actually build your reports on the fly.”
That flexibility and simple operation is essential to generating the outputs needed for effectively meeting IFRS 17 reporting requirements as well as providing data that is useful for steering the business.
“Our customers always says they don’t want a black box, they want to understand how the calculations work.”Dr. Daniel Trzesniak
When someone uses a spreadsheet, for instance, they are accustomed to being able to study the formulas that generate certain data outputs.
Systemorph’s Vertex platform offers the same sort of formula transparency but in an enterprise system that serves many different users in many different business units and contexts. Daniel demonstrated the solution’s formula drill-down interface, allowing users to see the formula and data points from across an organization that result in a particular value at the aggregated level.
“You can really track each and every formula until you get to the individual parameters. … So you can debug each and every step in the calculation, change parameters and look at the effect, and write formulas.”
Results in Weeks, Not Months or Years
The main reasons that insurers should use the Vertex platform for their IFRS 17 reporting processes are because it can deliver immediate results at a small fraction of the cost of custom software.
That’s because of the Vertex platform’s modern cloud-based SaaS architecture. It combines the ease of use of modern consumer applications – like the apps we all use at home – with the power of a robust full-featured enterprise-class data management system.
“We have the technology that covers the pain points already, pain points that are not really related to IFRS but are related to data management in general,” Daniel said. “IFRS is really the tiny cherry on top of the cake.”
Systemorph’s innovative financial data management solutions provide you with a powerful platform for your IFRS 17 reporting process. Learn more about the best practices for IFRS 17 compliance in our expert series of articles.