What is IFRS 17

IFRS 17 is a replacement of IFRS 4 dealing with the standards on accounting for insurance contracts. It was issued by the International Accounting Standards Boards in May 2017 and has a planned implementation date of January 2022. There are 450 insurers globally that are impacted by the IFRS changes, and implementation is well underway.

As part of the implementation of IFRS 17 there is a requirement to complete a transition period with an opening balance for IFRS 17 on 1st January 2020.

This is a challenging requirement for insurance companies, and the approach selected will have a major impact on the effort required to meet this challenge.

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Data Processing

CSM Calculations

Outputs & Sub-Ledger

integralynx-no-text

Entity Data Management

Audit

Web-Based UI

Data Processing

IntegraLynx has a built-in workflow wizard to manage the extensive data collection and processing required for IFRS17.

A simple drag-and-drop interface allows business users to import raw data from any file format.

IntegraLynx can access any data source including:

  • Source administration systems.

  • Insurance Company Ledger.

  • Existing data feeds (e.g. Solvency II data feeds).

  • 3rd Party Data Feeds.

CSM Calculations

IFRS 17 introduces the concept of the Contractual Service Margin (or CSM).

Utilise IntegraLynx’s powerful calculation engine to generate your CSM figures. IntegraLynx has been built to handle extreme data volumes and is a perfect fit for this new calculation requirement, allowing your team generate the required amounts within the month end close deadlines.

Outputs & Sub-Ledger

IntegraLynx has a built-in Accounting Rules Engine. This allows your SMEs to define accounting rules related to each transaction type. In addition to this IntegraLynx will use your company Chart of Accounts when creating sub-ledger records.

The IntegraLynx drill-down reporting suite allows users to review the postings created (incl. reconciliation between periods).

IntegraLynx can be utilised to directly create sub-ledger reporting, or can integrate seamlessly with your existing ledger to streamline your month end reporting process.

Entity Data Management

IFRS 17 requires processing and organisation of significant volumes of data.

The level of aggregation requirements of IFRS 17 arrange insurance contracts into groups based on three stages or levels:

(a) By risk type and way of management (portfolio level);

(b) By time of issuance (one year issuing period); and

(c) By degree of profitability (group level)

IntegraLynx manages the groupings listed in these requirements, and can enable full reference data management.

Audit

Meet the requirements of the strictest audit with IntgraLynx’s extensive tracking functionality.

All data processed is audited and recorded. Data change is permissioned and subject to an optional four-eyes check.

Users can attach files (such as emails) to changes for an easy audit trail of change instructions.

All system processing is recorded in an extensive event log.

Web-Based UI

IntegraLynx is a web-based application. This facilitates deployment on-site, or clients can avail of our cloud hosted solution.