Systems and processes will require additional development under IFRS 17. Even for those who recently implemented Solvency ll.
The impact of IFRS 17 on an insurer’s operating model will depend a number of factors, such as its current reporting basis; the complexity and maturity of its business; whether it has recently undergone a major finance transformation; or the extent to which it has complex legacy systems.
In Europe, insurers have made significant investments in new systems to comply with Solvency II, and many might expect that their newly-developed systems and processes will require little additional development in order to meet the requirements of IFRS 17. However, there are some fundamental differences that insurers who have implemented Solvency ll must be aware of.
For those companies that have not had to implement Solvency II, IFRS 17 will typically pose an even greater implementation challenge.