18 May 2017
Simon Perry, Principal and IFRS 17 Lead at Grant Thornton UK LLP, commented:
“IFRS 17 rewrites the rulebook for insurance reporting and will transform data, people, technology solutions and investor relations. Implementation costs are likely to be substantial especially for those entities, which cannot leverage modelling and reporting capabilities created during Solvency II implementation.
“Staff training, Board of Directors education and communication with the investors will be crucial for achieving the Standard’s objectives and for improving transparency, consistency and comparability across the insurance markets.
“Over the next three years, we expect the key focus areas for firms to be:
- understanding the financial and operational impacts on transition and for new business
- implementing efficient data collection and storage solutions, and streamlining production processes and IT systems
- developing and explaining new performance measurement and business steering metrics.
“A strategic approach to IFRS 17 Transition could give CFOs powerful insight on risk and performance drivers and create a change agent to harness the resources of entities and the talent of their people.”