IFRS 17 (International Financial Reporting Standard) which is the first comprehensive standard in the insurance industry, was published by the International Accounting Standards Board. All insurance companies reporting under IFRS will be impacted by the new reporting standard when it is planned to be effective from January 2023.
Different reporting systems in accounting make it difficult for investors to understand and compare insurers’ performance. IFRS 17 will ensure consistent comparability of insurance contracts and will also help investors or other users to understand risks, profitability and financial performance.
Our Approach & Solution
The first and most fundamental phase of the project is the process of collecting the data needed for the new data model requirements, metrics and KPIs to be calculated from different operational systems and placing them into data models. At this stage, operational system data is cleansed and transformed with the Extract-Transform-Load approach and loaded into the target models via the ETL Tool.
You can imagine that many projects take place in the operational systems of companies over the years, and this situation makes it difficult to analyze the data. Therefore the most critical phase of the project is the process of collecting and integrating historical data from different source systems that have changed over the years, and integrating complex KPIs and metrics that are not found in these systems, and requiring more than one operational system data to be calculated. The results obtained at this phase are used in analytical estimation models and affect the financial reports of the company.
In the second phase of the project; main data source, actuarial modeling data, IFRS 17 results, integration between accounting records and reporting systems, shortening the reporting period with process automation, automation in data preparation and quality controls, easy monitoring open to audit, storage and tracking of interventions and corrections are available.
Oracle Database as a relational database management system and IBM DataStage as an ETL perform tool are used in order to manage the project.