IFRS 17 – From Data to Journals

IFRS 17 – From Data to Journals

By Mark Miller, IFRS Global Lead, Legerity Limited.

Ahead of the IFRS 17 Forum, Mark shares with us his insight.

Mark, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is?

I am a qualified accountant (ACA) with over 20 years’ experience of finance change programs. I initially trained with PwC in the insurance practice and prior to Legerity was a senior finance exec at Vodafone for 15 years. I have been involved in multiple accounting and IFRS implementations and was recently appointed as the global lead at Legerity for IFRS Accounting Change. My current focus is developing our IFRS17 solution for insurers.

Please provide a brief overview of the data flow?

The data will flow from the underlying source systems through the risk and actuarial systems, via a data warehouse or staging layer into the Legerity FastPost accounting rules and calculation engine. Legerity FastPost produces detailed balances and journals for analysis and reporting together with aggregated data for posting to the General Ledger and Consolidation systems.

In your opinion, what is the best practice for handling contract journals?

These should be produced from data at the most granular level, this could be down to individual contracts, or possibly granular portfolios depending on the level of detail produced by the actuarial systems. Working off aggregations at the start leads to inefficiency and expense later on when business change and the need to explain results forces companies back to the details.

At the IFRS 17 Forum, you will be speaking on your insight regarding – IFRS 17 – From Data to Journals. Why do you believe this is a key talking point in the industry right now and what can risk professionals gain from this insight?

IFRS17 will be a big change program for insurers, it is vital to make good choices regarding the systems architecture and level of data granularity at the start of the program. A high performing rules and calculation engine can provide the starting point and catalyst for the implementation of a successful IFRS17 program.

What perspective can we expect on key business and accounting events?

I aim to show how the problem of processing insurance contracts under IFRS17 can be broken down into manageable rules and calculations that can be managed using a high performing rules and calculation engine.

What, in your opinion does the future hold for IFRS 17 professionals, and how can they ensure they are prepared for full implementation and beyond?

The future is a world where the reported results will now be much further from the source contract data. Premiums no longer form the basis of revenue. It is vital that IFRS17 professionals take the chance to create processes and data sets to enable them to guide the business through this major change in financial reporting and performance management. It will be of great benefit for large groups operating across multiple jurisdictions to leverage the change to deliver greater transparency and comparability of companies and business lines.