Recognizing the complexity and significant challenges posed by implementation of IFRS 9 Financial Instruments and the forthcoming insurance contracts standard, a large Asian-based bancassurance engaged KPMG to perform a high-level impact assessment, including a financial impact assessment on three products (life, takaful life and long-term fire insurance).
KPMG drew on a multinational team to conduct a gap analysis, assessing the current state, new business requirements and high-level organizational readiness. For the selected products, KPMG worked closely with the client to determine what data was available and compare current cash flows estimates to those expected under the forthcoming insurance contract standard, providing qualitative and estimated quantitative financial impacts. The project culminated in a workshop to identify key activities, milestones and dependencies, all of which were synthesized into a detailed action plan.
The project provided the client with a deeper understanding of the forthcoming standards and likely impacts on their business. Management now has a well-defined point from which to kick-start their implementation efforts, a solid foundation upon which to build their change program and materials to facilitate impactful reporting to the Board.
For more information on KPMGs impact assessment for the forthcoming insurance contracts standard please contact your local KPMG member firm today.
IFRS insurance contracts standard will have far reaching impacts for life and P&C insurers and reinsurers.