Prophet Life, Health and GI 2017 Q4 continue to enhance Prophet’s IFRS 17 solution:
The International Accounting Standards Board (IASB) published the final draft of IFRS 17 in May 2017. The new accounting standard represents a significant step forward in reporting for insurance contracts and will require changes to existing systems and processes.
Prophet's Life and Health liability libraries are designed to calculate the future cashflows, time value of money and risk adjustment for long term business. The IFRS 17 Group Calculations library uses results from liability models to perform aggregate calculations such as the Contractual Service Margin at the required unit of measurement and generates the statement of comprehensive income as well as associated disclosures. All of the General Model, Variable Fee and Premium Allocation Approaches are supported and, with the use of the Nested Structures feature of Prophet, these values can also be projected.
Similarly Prophet’s GI/P&C libraries are designed to calculate the Building Block and Premium Allocation Approaches for short term business.
The IFRS regulations also assume a high level of control and auditability of the data, and FIS have solutions for each stage of the data management process – Assumptions Manager for the inputs, Prophet Enterprise for the calculations and results, Prophet Control Centre for overall work flow management, and the Insurance Data Repository for linking the actuarial data to the chart of accounts within the accounting systems.
The Prophet IFRS 17 suite of solutions will help clients meet the calculation and governance requirements of the new accounting standard. It gives insurers the advantage of being able to both report and forecast results, allowing them to manage their business within a single platform. FIS is committed to helping clients satisfy the demands of IFRS 17, and will continue to update products and communicate findings as insurers begin their implementations. In addition, we provide comprehensive services to assist with implementation, covering actuarial or technical support, project management training and other managed services.
FIS encourages our customers to engage with us on this - both about the capability to meet the calculation requirements and about introducing the controls and software needed to ensure that analysts are convinced by the commentary on financial results and risk management. Please see below for more details.
Modelling IFRS 17 in Prophet
Getting the best from IFRS 17