Driving value beyond compliance in Financial Services


Henri Wajsblat

Head of Financial Services Solutions

In the aftermath of the financial crisis, financial institutions around the world have been hit by increasingly constraining regulations aimed to monitor their solvency and resilience to any future world economic or financial breakdown.

In the Insurance industry, this translated into the introduction of an international solvency framework, the Solvency II directive, aimed to ensure insurance carriers always hold enough capital and respect risk management standards to protect their policyholders.

Several years down the road, large insurance companies had to absorb significant technology costs to implement their Solvency II reporting requirements—and the regulatory roller-coaster ride is still not over.

Regulations, compliance, and insurance—oh, my!

In 2017, IFRS17 kicked in to add another significant layer of international regulation in insurance and to keep compliance at the forefront of CFO challenges. According to the 2018 Deloitte Global IFRS Insurance Survey, “Eighty-seven percent of insurers reported that their technology systems will require significant upgrade for IFRS17.”

Indeed, orchestrating data coming from multiple sources, enabling collaboration across finance, actuarial, and data management functions, and addressing the granularity of the reporting requirements require a scalable and collaborative solution.

What’s more, in its 2018 survey, “Maintaining optimism while grappling with transformational changes,” PwC reported that 95 percent of CEOs in the Insurance industry believe they are over-regulated. If the new accounting regulation is costly and resource-intensive journey from a technology perspective, there would be some merit to measure the return on investment of IFRS17 implementation projects—not only by satisfying the compliance compelling event but also by generating incremental value for the enterprise.

With Anaplan, you have a better way

If IFRS17 introduces the concept of a forward-looking view of the financial data, the solution to IFRS17 transformational challenges doesn’t reside only in the accounting. It will need to include activities such as cash-flow modeling and forecasting, aligning the planning and forecasting models to the new external reporting framework, and allocating costs at a granular level.

It will also impact the overall agility of the IFRS17 architecture to ensure that organizations can proactively measure and project the impacts of a new product, a change in pricing, or any material change in the business both during transition periods and on the IFRS17 financial statements.

Anaplan, in collaboration with Deloitte, has developed a comprehensive IFRS17 solution by combining Deloitte’s accounting, actuarial, and data management expertise with the scalability, agility, and forward-looking capabilities of the Connected Planning Platform.

More than addressing the IFRS17 reporting requirements, the solution is meant to drive value beyond compliance and support the transformation agenda of CFOs in the Insurance industry.