Client Story

Delivering strategic value and cost savings with an eye toward compliance

Leveraging the KPMG/SAS alliance to provide an IFRS 17 approach and roadmap

Ed Bayer

Ed Bayer

Principal, Modeling & Valuation, KPMG US

+1 919-664-7132

One of the world’s largest international insurance carriers had federated International Financial Reporting Standards (IFRS) reporting to local entitles, since consolidation was not needed. KPMG assessed the 30+ global entities in risk-weighted tiers, based on entity size, product mix, and local regulatory conditions— including IFRS 17 adoption expectations. In-depth workshops and procedures included:

  • Accounting: Initial portfolios were defined and contract boundary issues identified via contract level review
  • Actuarial: PAA eligibility and onerous contract testing executed on more than 35 (re)insurance products
  • Data: Key data elements and significant gaps identified for sourcing into the SAS data model
  • SAS implementation: Actuarial prototype cash flows staged into the SAS sandbox; LRC and LIC balances tested compared to with accounting desktop tools
  • Operating model: Identified close processes changes needed for pivot to SAS-centric, offshore business-as-usual model.

Insights helped the client to:

  • Quickly identify which approximately 20 percent of products have a significant possibility of GMM treatment
  • Facilitate hard risk and budgetary choices, concerning which activities are needed immediately under “no regrets” approaches, versus where waiting maintains flexibility
  • Focus accounting policy development on items with the greatest impact on implementation (e.g., PAA eligibility, contract boundary, reinsurance, expenses, transition)
  • Fast-track SAS IFRS17 solution procurement and infrastructure development, to provide a stable core for upstream actuarial and data and downstream accounting teams to build out from
  • Engage country executives, with holistic views of the implementation process and end state
  • PMO a lean, effective, SAS-based IFRS 17 implementation.
Delivering strategic value and cost savings through compliance
KPMG assisted a major carrier to assess gaps and prepare a “no regrets” implementation roadmap for over 30 legal entities and jurisdictions around the globe across property and casualty and life products.

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