In early September Legerity hosted a webinar looking at the benefits and challenges of the Premium Allocation Approach (PAA) to IFRS 17.
During the webinar we asked an audience of 300 insurance specialists whether their firms were building their IFRS 17 solution internally, purchasing a complete solution from a vendor or combining the two approaches.
Recent insight from PwC indicated that firms who started their IFRS 17 projects early, building their solution internally, are now coming back to the market and reaching out to vendors. They may be finding gaps they didn’t originally predict, and perhaps issues that vendor-based solutions are better equipped to solve.
41% of the insurers we asked are looking at a combination of vendor-based solutions with some internal build around the firm’s specifications. This largely mirrors what Legerity is seeing in the market, as there is no one-size -solution that fits-all for IFRS 17.
A key message for the 18% going down the internal-build route, is that the vendor market is maturing and there are more opportunities to buy purpose-built, ready-to-use solutions from vendors.
A key message for the 18% going down the internal-build route, is that the vendor market is maturing and there are more opportunities to buy purpose-built, ready-to-use solutions from vendors. By now, vendors will have run a number of POCs and begun implementations. They will be able to bring a level of knowledge from experiences with other clients, and previous change programs, that may not be achievable internally.
27% of the audience said they would be purchasing a vendor-based solution. This will still likely include some internal configuration to integrate the solution with existing systems.
The 14% who are unsure or undecided on their IFRS 17 strategy may still be in the early stages of determining their IFRS17 requirements and still running impact assessments. These firms are in danger of not delivering compliance in time for January 2022. The IASB stated, in a recent webinar, that there will be no further delays to the standard, so Insurers shouldn’t rely on potential extensions. It is even more imperative that firms mobilise.
As we move into the closing months of 2019, timelines that were already tight are only going to get increasingly harder to achieve.
Available on the Cloud and pre-configured for IFRS 17, Legerity FastPost can help insurers accelerate their programs.
Contact Legerity today to discuss your program with our IFRS 17 experts.