2019 - Proof of Concept to Implementation

2019 is a busy year for IFRS 17 programs. Requirements need to be finalised, Proof of Concepts undertaken, and technology selections made. By mid-year your project teams need to be fully mobilised with solution designs in place. Detailed design and implementation need to be well underway during the second half of the year.

OVERVIEW

Accounting Policy and detailed business requirements should be captured with supporting scenarios and Use Cases. Look to determine the end to end process.

Answering questions such as where the CSM will be calculated, will the IFRS 17 system require NPV’d or pre-discounted cash flows, where is the grouping and onerous testing. Do you require multi-gaap, multi-currency, multi-calendar?

Data is key to any IFRS 17 program, identify data sources and complete your gap analysis to ensure all required data is available from the upstream systems and any shortfalls identified.

KEY DELIVERABLES

  • Requirements documents
  • Inventory of data sources
  • Use Cases
  • IFRS 17 calculation requirements
  • Target Architecture

OVERVIEW

Securing resources for your IFRS 17 project is key to the success of the project. Identifying the resources to be assigned to the project and making them available can be a difficult task in many organisations. The project will require full-time resources assigned to the project, and SME business and technical resources that can be called upon periodically to contribute to the requirements, design and testing of the solution.

KEY DELIVERABLES

  • People
  • Places
  • Contracts
  • Plan

OVERVIEW

Legerity’s Proof of Concept for IFRS 17 delivers a clear and structured route from impact assessment to implementation. It provides the full end to end, data to disclosure processing of a selected number of scenarios across all model types: GMM, PAA and VFA.

Legerity has a cloud based PoC sand box and has run highly successful programs for all types of insurers including Life, General, Re-Insurance and London Market. A PoC can really help with detailed requirements analysis.

KEY DELIVERABLES

  • IFRS 17 Cloud System
  • Data to Disclosure processing
  • Journal output
  • CSM calculation
  • Data requirements & gap analysis
  • IFRS 17 Disclosure Reports
  • Functional Use Cases
  • Non Functional Requirements
  • Target Architecture
  • Next steps recommendation

OVERVIEW

Many organisations will need to acquire new technology to support their IFRS 17 programs. Evaluating and selecting the right system for your organisation may include a formal market evaluation, RFI and RFP process. Our recommendation is to start early to review solutions, typically after Impact Assessments have been completed.

There are a number of solutions available in the market providing a range of capabilities and differing approaches to addressing IFRS 17. Choose your technology and vendor carefully, you will be using the system for at least the next 10 to 15 years.

Our recommendation is to use IFRS 17 to adopt a modern, cloud based solution with an exciting roadmap – like Legerity FastPost, as opposed to older technology nearing its end of life.

KEY DELIVERABLES

  • Consider Cloud / SaaS based solutions
  • Look for solutions based on modern & open source technology
  • Performance & scalability are critical
  • Strong product roadmap is important

OVERVIEW

There are many options to be considered when designing the your IFRS 17 Solution. Which systems will be responsible for the calculation of the CSM? The level of granularity of accounting eg: policy or policy group level? Which are the best sources of the data required to perform the IFRS 17 calculation and satisfy the IFRS 17 disclosure requirements.

The high-level solution design will answer these questions and provide a framework on which the detailed design can be based. The high-level design will also provide the technology and infrastructure environment requirements.

KEY DELIVERABLES

  • Technical architecture
  • Functional architecture
  • Data Integration – sources / targets
  • Sub-Ledger Chart of Accounts
  • Sub-Ledger Period End processes in scope
  • Project scope
  • Project plan
  • IFRS 17 models & calculations in scope
  • Testing Approach
  • Transition Approach (High Level)

OVERVIEW

The detailed will take each of the areas defined in the high-level solution design, and detailed specifications and configuration requirements will be created. This will include functional and non-functional aspects of the solution. Detailed IFRS 17 calculation configuration options will be agreed, and the IFRS 17 accounting rules will be reviewed and customised to the client’s specific needs, disclosure reports will be customised to the client’s chart of accounts. Interface contracts will be defined agreed for all inbound and outbound data feeds. Review the chart of accounts to ensure all of the IFRS 17 reporting requirements can be met, and the chart can be supported by the available data.

The transition process will also be defined, and the data granularity, data history and methodologies agreed.

KEY DELIVERABLES

  • Inbound Data Interfaces
  • Outbound Data Interfaces
  • Accounting Rules
  • Control framework & error handling
  • Data management
  • IFRS 17 Calculation Configuration Requirements
  • Transition Scope & Approach

OVERVIEW

Accounting Policy and detailed business requirements should be captured with supporting scenarios and Use Cases. Look to determine the end to end process.

Answering questions such as where the CSM will be calculated, will the IFRS 17 system require NPV’d or pre-discounted cash flows, where is the grouping and onerous testing. Do you require multi-gaap, multi-currency, multi-calendar?

Data is key to any IFRS 17 program, identify data sources and complete your gap analysis to ensure all required data is available from the upstream systems and any shortfalls identified.

KEY DELIVERABLES

  • Requirements documents
  • Inventory of data sources
  • Use Cases
  • IFRS 17 calculation requirements
  • Target Architecture

OVERVIEW

Securing resources for your IFRS 17 project is key to the success of the project. Identifying the resources to be assigned to the project and making them available can be a difficult task in many organisations. The project will require full-time resources assigned to the project, and SME business and technical resources that can be called upon periodically to contribute to the requirements, design and testing of the solution.

KEY DELIVERABLES

  • People
  • Places
  • Contracts
  • Plan

OVERVIEW

Legerity’s Proof of Concept for IFRS 17 delivers a clear and structured route from impact assessment to implementation. It provides the full end to end, data to disclosure processing of a selected number of scenarios across all model types: GMM, PAA and VFA.

Legerity has a cloud based PoC sand box and has run highly successful programs for all types of insurers including Life, General, Re-Insurance and London Market. A PoC can really help with detailed requirements analysis.

KEY DELIVERABLES

  • IFRS 17 Cloud System
  • Data to Disclosure processing
  • Journal output
  • CSM calculation
  • Data requirements & gap analysis
  • IFRS 17 Disclosure Reports
  • Functional Use Cases
  • Non Functional Requirements
  • Target Architecture
  • Next steps recommendation

OVERVIEW

Many organisations will need to acquire new technology to support their IFRS 17 programs. Evaluating and selecting the right system for your organisation may include a formal market evaluation, RFI and RFP process. Our recommendation is to start early to review solutions, typically after Impact Assessments have been completed.

There are a number of solutions available in the market providing a range of capabilities and differing approaches to addressing IFRS 17. Choose your technology and vendor carefully, you will be using the system for at least the next 10 to 15 years.

Our recommendation is to use IFRS 17 to adopt a modern, cloud based solution with an exciting roadmap – like Legerity FastPost, as opposed to older technology nearing its end of life.

KEY DELIVERABLES

  • Consider Cloud / SaaS based solutions
  • Look for solutions based on modern & open source technology
  • Performance & scalability are critical
  • Strong product roadmap is important

OVERVIEW

There are many options to be considered when designing the your IFRS 17 Solution. Which systems will be responsible for the calculation of the CSM? The level of granularity of accounting eg: policy or policy group level? Which are the best sources of the data required to perform the IFRS 17 calculation and satisfy the IFRS 17 disclosure requirements.

The high-level solution design will answer these questions and provide a framework on which the detailed design can be based. The high-level design will also provide the technology and infrastructure environment requirements.

KEY DELIVERABLES

  • Technical architecture
  • Functional architecture
  • Data Integration – sources / targets
  • Sub-Ledger Chart of Accounts
  • Sub-Ledger Period End processes in scope
  • Project scope
  • Project plan
  • IFRS 17 models & calculations in scope
  • Testing Approach
  • Transition Approach (High Level)

OVERVIEW

The detailed will take each of the areas defined in the high-level solution design, and detailed specifications and configuration requirements will be created. This will include functional and non-functional aspects of the solution. Detailed IFRS 17 calculation configuration options will be agreed, and the IFRS 17 accounting rules will be reviewed and customised to the client’s specific needs, disclosure reports will be customised to the client’s chart of accounts. Interface contracts will be defined agreed for all inbound and outbound data feeds. Review the chart of accounts to ensure all of the IFRS 17 reporting requirements can be met, and the chart can be supported by the available data.

The transition process will also be defined, and the data granularity, data history and methodologies agreed.

KEY DELIVERABLES

  • Inbound Data Interfaces
  • Outbound Data Interfaces
  • Accounting Rules
  • Control framework & error handling
  • Data management
  • IFRS 17 Calculation Configuration Requirements
  • Transition Scope & Approach

2020 - Delivery, Testing, Data Take On and Parallel Runs

By the beginning of 2020, your system configuration and build need to be completed with the end to end solution moving in to comprehensive system integration and user acceptance testing. The approach to transition will need to be finalised, with data loaded, dry runs completed, and models refined. The parallel run needs to be completed before year end ready for a full comparative year in 2021.

Overview

As the detailed design is completed, the configuration of the system can begin. The configuration will include mapping the data interfaces to the API and including client specific attributes, configuring the calculations to meet the customers IFRS 17 accounting policy and implementation choices, configuring the Sub-Ledger and Accounting Rule templates to align with the client’s chart of accounts and detailed reporting requirements. Error handling, data retention, security and other non-functional items will also be configured.

A thorough system test will ensure the configuration of the system meets the client’s defined requirements, and the system can be handed over ready for the client’s SIT.

Key Deliverables

  • Configuration documents
  • Fully configured system
  • System delivered to the clients test environment – ready for Integration Test

Overview

The system is ready for end to end System Integration Testing.
System Integration Testing phases aligned to respective delivery wave.
Configuration drops within wave will enable an overlap of SIT within delivery waves and continuous delivery.

Key Deliverables

  • SIT test plan
  • SIT entry criteria
  • SIT test scenarios
  • SIT test data
  • SIT exit criteria
  • End-to-end functioning solution
  • Updated RTM

Overview

This phase covers the strategy, approach, design and test for loading policies into FastPost, processing the data and generating their account postings. Transition accounting rules may apply the take-on.

Testing will include a number of dry runs.

Key Deliverables

  • Transition data load approach & plan
  • Design & configuration
  • Schedule of events
  • Take-on dry-runs

Overview

Dependent on their content, UAT can be scheduled at the end of each delivery wave, enabling earlier delivery and initial data loads.

Key Deliverables

  • Trained Users & Knowledge Transfer
  • UAT test plan
  • UAT entry criteria
  • UAT test scenarios
  • UAT test data / transition test load
  • Solution acceptance by business & users
  • Updated RTM

Overview

Take-on of initial data and subsequent commencement of parallel running per delivery wave, depending on structure of wave and the calculation method applied to the take-on groups.

Key Deliverables

  • Loaded & reconciled FastPost solution.
  • Comparatives accounting ledger initiated & reconciled.

Overview

Opportunity to refine any calculations, replay data and review results.

Key Deliverables

  • Refine Actuarial Model
  • Refine Risk Adjustment Calculations
  • Refine Expense Allocation
  • Refine Accounting Policies

Overview

As the detailed design is completed, the configuration of the system can begin. The configuration will include mapping the data interfaces to the API and including client specific attributes, configuring the calculations to meet the customers IFRS 17 accounting policy and implementation choices, configuring the Sub-Ledger and Accounting Rule templates to align with the client’s chart of accounts and detailed reporting requirements. Error handling, data retention, security and other non-functional items will also be configured.

A thorough system test will ensure the configuration of the system meets the client’s defined requirements, and the system can be handed over ready for the client’s SIT.

Key Deliverables

  • Configuration documents
  • Fully configured system
  • System delivered to the clients test environment – ready for Integration Test

Overview

The system is ready for end to end System Integration Testing.
System Integration Testing phases aligned to respective delivery wave.
Configuration drops within wave will enable an overlap of SIT within delivery waves and continuous delivery.

Key Deliverables

  • SIT test plan
  • SIT entry criteria
  • SIT test scenarios
  • SIT test data
  • SIT exit criteria
  • End-to-end functioning solution
  • Updated RTM

Overview

This phase covers the strategy, approach, design and test for loading policies into FastPost, processing the data and generating their account postings. Transition accounting rules may apply the take-on.

Testing will include a number of dry runs.

Key Deliverables

  • Transition data load approach & plan
  • Design & configuration
  • Schedule of events
  • Take-on dry-runs

Overview

Dependent on their content, UAT can be scheduled at the end of each delivery wave, enabling earlier delivery and initial data loads.

Key Deliverables

  • Trained Users & Knowledge Transfer
  • UAT test plan
  • UAT entry criteria
  • UAT test scenarios
  • UAT test data / transition test load
  • Solution acceptance by business & users
  • Updated RTM

Overview

Take-on of initial data and subsequent commencement of parallel running per delivery wave, depending on structure of wave and the calculation method applied to the take-on groups.

Key Deliverables

  • Loaded & reconciled FastPost solution.
  • Comparatives accounting ledger initiated & reconciled.

Overview

Opportunity to refine any calculations, replay data and review results.

Key Deliverables

  • Refine Actuarial Model
  • Refine Risk Adjustment Calculations
  • Refine Expense Allocation
  • Refine Accounting Policies

2021 - Comparative Period

IFRS 17 is now in production and you will be well placed to report comparative numbers with IFRS 4. There is still further time for fine tuning business processes driving our further Compliance Plus and Digital Finance Transformation improvements.

Overview

You are producing IFRS 17 numbers to be used for comparables.

Further refinement of production operating model.

Key Deliverables

  • Existing business processes have been improved
  • New processes implemented
  • IFRS 17 now reporting in place alongside IFRS 4

Overview

The system is now in production and under full SaaS support.

Key Deliverables

  • Scheduled processing throughout end-to-end solution
  • Reconciled inputs & outputs
  • Quality review of data

Overview

You are producing IFRS 17 numbers to be used for comparables.

Further refinement of production operating model.

Key Deliverables

  • Existing business processes have been improved
  • New processes implemented
  • IFRS 17 now reporting in place alongside IFRS 4

Overview

The system is now in production and under full SaaS support.

Key Deliverables

  • Scheduled processing throughout end-to-end solution
  • Reconciled inputs & outputs
  • Quality review of data

2022 - Live

Having completed your comparative year you are now reporting to the markets fully IFRS 17 compliant. Your reporting processes are in great shape, highly automated and already delivering faster close and more detailed business insight.

Overview

Project completed. External reporting in place.

Overview

Project completed. External reporting in place.