We’re within the dwelling stretch! But, with lower than a yr left till the implementation date, a major proportion of our insurance coverage trade in East Africa is but to actually get caught into their IFRS 17 initiatives.
IFRS 17 implementations are advanced. Even for the best of insurance coverage organisations, there’s a lot to do. For example, understanding the necessities, buying or creating an IFRS 17 engine, integrating that with the organisation’s system and creating a brand new chart of accounts that shall be linked to a basic ledger.
Moreover, the requirements require insurance coverage organisations to scrutinise their money move fashions, actuarial fashions, expense techniques, monetary planning and evaluation processes, accounting guidelines, transition, controls and enterprise analytics, amongst different areas.
The complexity of the usual itself is baffling decision-makers and making it onerous for a lot of to kick off their initiatives on the fitting footing.
Even in the event you haven’t but began to organize for IFRS 17, otherwise you’re having doubts about whether or not your implementation programme will meet the deadline, there are nonetheless methods to recover from the road in time and adjust to confidence. Beneath are a few of our ideas primarily based on the wealth of expertise working with shoppers domestically and from the learnings of the initiatives throughout PwC globally.
A great place to start out can be figuring out the fitting implementation associate — one that you just belief and has the fitting experience and capability to dedicate to you.
There must be no compromise on assembly the IFRS 17 necessities, however along with an implementation associate, you need to take a realistic method the place potential. You also needs to be asking your potential implementation associate about what instruments and accelerators they’ll deploy to fast-track your journey.
Attempting to do it alone is just not the most effective method for our market. Are you able to develop your individual instruments and accelerators? Removed from being the simple possibility, ‘do it your self is prone to be the trickiest, riskiest and, in the long term, most expensive possibility.
If choosing a vendor resolution, it’s necessary to recognise that what’s proper for different companies may not be for yours. Additionally, when choosing a vendor make sure you critically entry their understanding of our market, and your corporation and you’ve got entry to help over the long run.
One, you don’t need to find yourself with an answer that isn’t match for your corporation, and two, you need to be sure that your software supplier is accessible!
Whereas some parts of IFRS 17 are moderately easy, others will be deceptively difficult. Our expertise exhibits that this small proportion of difficult duties can simply find yourself taking greater than half the time; in the event you’re not nicely deliberate to cope with them it may well considerably delay your undertaking. Being guided on the right way to deal with these rapidly and successfully is crucial so as to maintain shifting on.
IFRS 17 adjustments your complete monetary statements, not only one line merchandise like IFRS 9 did. So, the quicker you can begin piloting the brand new financials the deeper your understanding of IFRS 17 shall be.
This reinforces the necessity to work with an implementation associate that may deploy the fitting instruments and accelerators.
Stakeholder administration could sound cliché and as over-used, as these two phrases are, they’re essential as a part of IFRS 17 implementation. Efficient stakeholder administration is not going to solely be sure that the undertaking stays on monitor, however that it additionally provides worth to the enterprise.
Implementation of IFRS 17 will make you dig deep into your pockets, and so conserving shareholders, boards and auditors strolling alongside you make sure you reap the advantages. It’s important to coach them as you educate your administration on the journey.
One other necessary consideration is information. You might be very prone to spend the very best proportion of time finding out your information/techniques (even after the implementation date) no matter no matter IFRS 17 engine you employ.
Understanding the information necessities and potential techniques implications early on is necessary. Moreover, with the ability to kind a view on how that information shall be gathered and what assumptions can sensibly be made within the meantime are equally very important.
Lastly, you want the right combination of abilities and capability to ship IFRS 17 effectively and efficiently. Nevertheless, what is commonly forgotten is that we have to take care of these individuals too.
IFRS 17 has already created plenty of motion in our markets and recruiting the fitting abilities is simply going to get more and more tougher. Dropping a essential employees member will set your undertaking months again. An efficient change administration plan also needs to be a part of the individuals agenda inside your organisation.
With IFRS 9 implementation throughout East Africa, we noticed many banks sit on the fence till the deadline was looming. A few of these banks purchased low-cost, their implementation was half-baked and 4 years on they’re nonetheless not pleased with their fashions. They’ve spent cash on patchwork updates or have merely thrown away their previous system and began afresh.
We should study from this — suppose very rigorously about your IFRS 17 implementation method and be sure that the assorted companions you’re employed with (consultants, distributors, IT suppliers) are best for you and won’t find yourself costing you extra in the long term.