IFRS 17: How we’re working with Oracle Financial Services to solve data management headaches
10 September 2020
Our recent report ‘Managing data to optimise cloud strategy’ highlighted the role your data management framework plays in a successful IFRS 17 transition. We’ve seen that the data element is a particular challenge for many insurers, and often underestimated by both IT and the business. But when time is of the essence and resources are tight, there are ways around these headaches. We’ll take a closer look at some of the solutions we have been developing with Oracle to show how you can get your programme back on track and also find time for building in additional benefits for your business.
For many the challenge isn’t simply the new requirements, such as ‘recognition date’, but how to unify data across different departments, data definitions and data quality standards. For many solution vendors, the data model provided is not as simple as ‘plug and play’. A lot of time is required to unpick the vendor’s data model and work out which source systems are required to meet each individual element and how data should interact between them. For many businesses, the number of source systems can be vast and complex, making this exercise time-consuming and increases risk pushing out programme timelines.
What we have created
We have developed a number of pre-built data and process accelerators to add value to our clients IFRS 17 programmes and business function:
- Our Data Model outlines the classes (conceptual level) and groups (logical level) of data required for the data tables and attributes.
- Our Data Dictionary provides a granular insight into what data is required from different source systems and teams across your business for each measurement model (i.e. PAA, GMM, VFA).
- Our Data Contracts collate these data specification details into easily readable formats, and provide additional details for non-functional considerations and data loading methods for the IFRS 17 applications.
With the IFRS 17 data requirements clearly documented in our pre-built assets, the length of time discerning what is required is shortened. Where a vendor has not been selected, this allows you, as an organisation, to progress with data sourcing activities earlier in the programme. Where you have a vendor, our accelerators can be aligned to the calculation engine's requirements and deliver functional and technical specifications faster. More time exists to focus on where you have gaps and addressing them sooner rather than later to create a robust solution architecture.
What we bring in collaboration with Oracle
We have applied our data accelerators across the main IFRS 17 vendor offerings in the marketplace to maximise their value. This helps to close the gap between vendor and business terminology of IFRS 17 data elements, and adding the business lens to technical vendor outlooks. One example is where we have done this for the Oracle IFRS 17 Analyser solution. This provides a comprehensive set of data elements and pre-built tools deliver IFRS 17 requirements for computation, reporting, and accounting, in a solution which unifies Risk, Finance and Actuarial data. This simplifies IFRS 17 implementations and allows businesses to realise their benefit at an earlier stage.
In order to make it more easily accessible, we collated Oracle’s data documentation and converted it into our data accelerators. By aligning the Oracle data requirements with the additional business information of our accelerators, we were able to simplify an otherwise very time-consuming task.
Another time consuming task is updating the current chart of accounts and defining the required data hierarchies. Our data accelerators highlight the needed reference data and apply Oracle’s sample chart of account and sample accounting events for IFRS 17 to accelerate your IFRS 17 programme.
Using accelerators to speed up your IFRS 17 programme allows more time to focus on value-add activities (e.g. an operational accounting engine allows for greater analysis to be conducted prior to the transition date). And, having invested in new technology, it is also worth looking at where it can be used for further benefit - such as part of a wider transformation programme. To find out more about these PwC tools, please get in touch.