IFRS 17 solution of the year: Legerity
Legerity wins InsuranceERM's IFRS 17 award for the second year running. It marks a successful year as the vendor has also won the InsuranceERM accolade for best use of cloud technology.
One judge was impressed with Legerity's FastPost Express system for IFRS 17 as it is agile enough to respond swiftly to changes in regulatory requirements.
As IFRS 17 continued to evolve during 2021, Legerity says FastPost is well placed to handle change with minimal new development in order to keep projects on track and within budget.
Moreover, with the IFRS 17 transition starting in 2022, many insurers want to be in dry runs and testing phases. Having worked with different types of insurers means Legerity can harness those experiences to give clients guidance.
As an example, the reinsurance loss recovery component (RLRC) is by far the most complex accounting requirement within IFRS17. The calculations for RLRC are based on the underlying insurance contracts.
"For many insurers this created a major change of direction in their existing IFRS17 design and configuration, leading to significant re-work, delay and cost-overrun," says the technology vendor.
The vendor provided no code extensions for its existing rules-based configuration to clients, thereby enabling highly complex change to be delivered with minimum disruption.
IFRS 17 is due to take effect in January 2023, but Jeremy Wood, the vendor's chief executive and founder says that date does not mean there will be no further work to do on IFRS 17, as the standard "is going to have quite a long tail".
Another judge complimented FastPost on its use in areas other than IFRS 17. Legerity has extended FastPost for environmental, social and governance (ESG) financial reporting and carbon-based accounting, with easy upgrade options for clients after IFRS 17.
The firm launched a webinar on ESG and the role of finance in December, and expects work in this area to continue.
Wood says: "Finance has a role [in ESG]. We have started to do work around the role of finance and how FastPost can support that."