Let’s start with a big congratulations! You’ve made it, or are very close, and are now in a world of IFRS 17 compliance. Take your pat on the back, take a bow, and thank your project teams and all the functional areas that made this long-drawn-out miracle possible.
Now take a deep breath. Try and fight off that nagging feeling…
Why does it feel like this was just the tip of the iceberg?
For many, moving to IFRS 17 compliance has not meant moving into Business-as-Usual (BAU). In discussions with many insurers across the industry and throughout Canada and the Caribbean, there has been a struggle to deploy IFRS 17 beyond the direct project teams and move into BAU. The project started with design & discovery, writing policy papers, and outlining requirements. It moved through implementation and several iterations of testing and tuning the key items to get to compliance. Comparative re-runs and/or movement to parallel felt like pulling teeth to make it work, with some insurers in different jurisdictions still working through this component.
The Struggle to Achieve BAU
So why do numerous companies working towards compliance in their first reporting period or having just completed Q1 struggle to achieve BAU? This is primarily due to a few factors:
- Separate Programs: Most organizations had separate IFRS 17 programs, distinct from their day-to-day finance organization. Due to competing priorities to achieve IFRS 17 compliance, BAU teams were not integrated during testing or comparative/parallel phases and appropriate handovers were not planned.
- Unclear Roles and Responsibilities: There was no unified understanding of how IFRS 17 Financial Close would operate in BAU. Roles and responsibilities in BAU were unclear because project resources had always managed them.
- Unfamiliar Process Flows: While teams are familiar with IFRS 4 processes, they lack comprehension of the detailed process flows under IFRS 17, which are significantly different and not a simple modification of current BAU practices.
- Untapped Potential: Although organizations can produce IFRS 17 Financials, they lack an understanding of the outputs’ meaning, how to forecast under IFRS 17, and how to leverage investments in the various infrastructures introduced.
Without proper guidance and support, most insurers will not be able to fully capitalize on their IFRS 17 infrastructure investments. This includes those common elements that come with every IFRS 17 implementation such as a Data Lake, an IFRS 17 Measurement Tool, General Ledger updates, or in some cases, a new Subledger and the various reporting tools required to link multiple datasets and ultimately move to a fully transformed BAU.
Where is Your Organization on the Spectrum from MVP to Full Transformation?
The good news is that you can get there! Optimus SBR helps organizations navigate the path to accelerate to BAU with IFRS 17. Our support and implementation services include:
- Target Operating Model Development
- People Organization
- Process & Controls Mapping
- Financial Reporting & KPI Development
- Tailored Learning & Development
- Data Analytics & Automation
We Can Help Accelerate Your Transformation to BAU With Our Implementation Services
A Final Thought
Despite the investment required to reach compliance, insurers have yet to reap the full benefits of IFRS 17. We can help transform your program to BAU going forward. To learn more about how our services can help drive value from your IFRS 17 implementation investments, please reach out.
Optimus SBR’s IFRS 17 BAU Acceleration Services
Our IFRS 17 BAU Acceleration services help organizations fully leverage their IFRS 17 infrastructure to optimize their investment. Our team is one of the most experienced in the industry, having already supported 24 organizations, both in Canada and globally, through their implementation journey. We have the proven strategic and tactical expertise to help insurers get the most out of this new standard.
Contact Us for more information on how we can assist your team.
Evan Farlinger, CPA, CA – Principal, Financial Services Practice
Evan.Farlinger@optimussbr.com
Farshid Buhariwalla, CPA, CA – Principal, Financial Services Practice
Farshid.Buhariwalla@optimussbr.com
Automate and Digitize: Where Should Credit Unions Start to Build Efficiency?
Credit unions that want to improve efficiency should start by identifying their pain points, building a business case for digitization/automation, conducting a pilot program, implementing quick wins, and exploring new opportunities.
CAO Leadership Series: Municipal Budget Development
Addressing the challenges of municipal budget planning requires a holistic and forward-thinking approach. It necessitates active and continuous engagement with community members, proactive risk reduction strategies, and efficient procurement practices.
Unlocking Security Excellence: Essential IAM & RBAC Best Practices for Robust Application Access and IT Risk Management
The rise of new technologies and the ever-evolving IT landscape have necessitated the implementation of a robust Identity and Access Management (IAM) system accompanied by a Role-Based Access Control (RBAC) framework.
How Canadian Credit Unions Can Leverage ESG Principles and Technology to Reach a Younger Generation of Members
The incorporation of ESG principles by CCUs, coupled with the effective use of technology and targeted marketing, presents a powerful strategy for attracting younger members and securing future growth.
Building High Performing Teams: The 8 Components of Resilience
In a world where change is the only constant, organizations are awakening to the undeniable truth – resilience is the secret weapon for survival and success.
Natural Language in Data Visualization: A Showdown Between Tableau and Power BI
Two industry-leading data visualization tools, Tableau and Power BI, both offer the ability to query data using natural language. But how do they stack up?
7 Drivers of Economic Development
These seven drivers of economic development bring new money into the municipalities, accelerate the velocity of money within the city, increase the engagement of citizens, and propel the generation of new ideas, technologies, talent, success stories, wealth, and global rankings.
Steering Through Uncertainty: The Impact of IFRS 17 on Risk Management and Control Strategies
With a strong emphasis on accuracy and integrity, insurers are faced with the task of redefining their control environments and governance structures for financial reporting.
Analytical Data Mart vs. Data Lake: Which Approach is Better for Your Analytics?
Welcome to the world of data-driven organizations where it is crucial to have a well governed repository to efficiently store and manage your valuable data.
Mastering IFRS 17 with a Strategic Target Operating Model
When applied specifically to the realm of IFRS 17, a strategic Target Operating Model provides a high-level view of the end-to-end solution design, processes, controls, and close schedule required to execute the new finance model.
The Push for Companies to Prioritize Leadership Development
Leaders have been expected to do more than ever in the past few years. Navigating through uncertainty, dealing with new challenges, and responding to rapid change have all become commonplace demands for management teams.
Navigating a Hybrid Work Environment with Gen Z Employees
Millennials, who have dominated the workforce for the past decade, are now ceding the stage to the next generation of employees – Generation Z.
Developing Early Career Talent: 5 Strategies for Success
A robust and effective early career talent development program is essential for companies looking to grow their future leaders from within.
How to Capitalize on Your IFRS 17 Investment
With guidance and support insurers can move from IFRS 17 compliance to business as usual (BAU) and fully capitalize on their investment.
Leading & Engaging Gen Zs – The Bold Approach
Gen Zs are the new age workforce that is gradually changing the landscape of the corporate world. Leading and engaging Gen Zs in this environment requires a bold approach.
Power BI vs Tableau – Which is Better?
Although Tableau and Power BI are similar business intelligence tools, there are key differences that organizations should be aware of when considering analytical requirements.
