“…the new standard requires more granularity and strict data management control”Mr. Diederichs and Dr. Trzesniak
“Challenges of IFRS 17” details the many ways in which the international accounting standard will affect how data is gathered, aggregated, analyzed and maintained across groups and hierarchical levels in insurers.
“The challenges associated with IFRS 17 are not accounting or actuarial issues but related to data, as the new standard requires more granularity and strict data management control,” explain Mr. Diederichs and Dr. Trzesniak in the article.
Issues that an insurer must address in an IFRS 17 project include:
Because different data from different groups and different levels will have different granularity, and IFRS 17 reporting process needs a flexible data management approach that can bring disparate data to the same level for integrating into the process.
Versioning & storage
How data changes are tracked over time and how data lineage can be traced are critical IFRS 17 requirements. Meeting those needs requires an organized approach to data storage that maintains easy to analyze versioning and lineage.
Data analysis and quality
Data validation and cleansing are essential components of an effective IFRS 17 process to ensure that outputs are accurate and based on high quality data.
Units of Account
Another primary requirement for IFRS 17 compliance is to determine the appropriate Units of Account for a given operation. But finding the right Unit of Account demands running the data processes with real-world data, not just tests.