Enterprise Risk Management Technology Guide 2023

FIS: Unlocking IFRS 17 and LDTI

Martin Sarjeant, head of insurance risk solutions management and strategy at FIS, reviews the challenges posed by the new IFRS 17 accounting standard and its US counterpart, long-duration targeted improvements (LDTI)

How are IFRS 17 and LDTI challenging re/insurers?

Martin SarjeantFor both accounting changes, data is a major issue – both in terms of getting the right level of granularity, and the availability of the data.

LDTI is really an extension of US GAAP, which has been around for a long time. All US insurers are reporting on US GAAP already, but with LDTI, there are some fundamental changes to how they make the calculations. By comparison, IFRS 17 is a whole new reporting standard.

From a vendor viewpoint, we use a very similar technique to support calculations at the group level for LDTI US GAAP and IFRS 17.

How can FIS help re/insurers with IFRS 17 and other aspects of insurance risk management?

We provide a full end-to-end automated offering spanning all re/insurers’ actuarial and accounting needs. With the extension of our Enterprise Accounting Solution (EAS), we are probably one of the only vendors that offers a full end-to-end solution from the sourcing of data to the posting of results and production of the financial statement.

We have a very mature offering, particularly for IFRS 17; we released our first solution for the standard a month after it was published.

As the clock is ticking towards the implementation deadline for both accountancy changes, some insurers do not have the luxury of replacing their systems. When that is the case, firms can layer our IFRS 17 or LDTI solution onto their own existing solution, where the two can work together.

Is FIS planning to launch new services, or enter any new markets?

We have been continuing to fine-tune our managed cloud service. We launched it five years ago and we have focused on improving the delivery model and reducing costs.

We are also launching new offerings in the cloud for smaller insurers, to enable them to implement cloud-native technologies and drive down their total cost of ownership.

We have also launched significant technology updates in July for our platforms, with a focus on providing more flexible results. We now offer a product called Prophet Enterprise Velocity Edition, which gives clients access to Intel’s AVX technology to enable considerably faster run-times.

In addition, we re-engineered our results and results storage so that it can use distributed data technology.

Together with our cloud technology, that step change in speed transforms the end-user experience.

Over the next year, we will be increasingly focused on connectivity and our Application Programming Interfaces (APIs) alongside our workflow tools, to integrate with other applications that insurers may have to enable full automation of the end to end process.

In addition to IFRS 17, our platform is used for hedging, asset liability modelling, capital standards and Solvency II, as well as managing market and operational risk.

Do you understand why many insurers are critical of IFRS 17 and do not see value in it?

I agree some insurers have been critical in the past in terms of the cost of compliance vs the benefits IFRS 17 brings. I do believe this is changing and will change when the standard is live.

IFRS 17 brings many benefits, such as properly valuing the insurance contracts on a market value basis, delivering a truer reflection of profits, near global consistency, better governance, greater protection for policyholders, investor confidence and transparency. These are just some of the benefits of IFRS 17.

I believe the benefits above will not only help drive more investment in the insurance sector, but globally it will increase insurance penetration levels, particularly in emerging markets, and increase insurers’ financial strength.

 

Martin Sarjeant

T: +44 (0) 1932 757613

E: [email protected]

Guide entries by FIS

FactSet Data & Analytics Solutions

Touchstone

Pricing - Tyche Pricing System & Aon Pricing Platform

Reserving - Tyche Reserving System

Aptitude IFRS 17 Solution

Aquantec Ocean

Atidot AI & Analytics Platform - Atidot OPTIMAL

ANNalytica

BW KIDS 4 PRIIPS Tool

SIImplify

With Profits Payout Monitoring Dashboard

Demographic Experience Monitoring Tool

ATOME: Particles

ATOME: Matter

ADVISE® Enterprise Risk Modeler

Conning Allocation Optimizer™

Conning Climate Risk Analyzer™

FIRM® Portfolio Analyzer

GEMS® Economic Scenario Generator

XSG

Detech Optimizer

DEvent

Dynamo Analytics - Psicle

Incisive Essentials - Xcellerator

Integrate

Milliman Mind

ModelSign

Solvency II Compliance Assessment Tool

STAR Solutions NAVI

STAR Solutions VEGA

Milliman Mind–IFRS 17

Arius

Datalytics-Defense

Nodal Claims Triage

Milliman Economic Scenario Generator

Milliman AccuRate Fleet

Milliman Bungalow

Milliman PinPoint

Curv

Milliman Long–term care Advanced Risk Analytics™ (Milliman LARA™)

Milliman M-PIRe Valuation & Securitization Software

AXIS™ Actuarial System

Scenario Generation Solutions

Climate Pathways

RiskIntegrity™ Suite

Oasis Loss Modelling Framework

GLASS

Economic Scenario Generator

Phinsys Insurance Suite

CoMeta

ChemMeta

Matching Adjustment Analytics Tool

R³S Software Suite

Mo.net Model Development Studio

Mo.net Operational Modelling Centre

Mo.net Quotations Service

Mo.net Cloud Modelling Service

Mo.net Mobile Modeller

IFRS Assess Enterprise

SolvencyTool

SolveXia

Governance, Risk & Compliance System

DataValidator

ResQ Financial Reporter

Unify

Igloo

Radar

ResQ

zeb.control

evo-insight - New Actuarial Modelling and Analytical Platform from Zenith

Asseco IFRS 17 Engine

Actuo SII Engine

IFRS17 Solution

Reserving solution

Solvency II solution

Pricing solution

CLARA Casualty Claim Platform (CLARA Triage, CLARA Treatment, CLARA Litigation, CLARA MSP Compliance, CLARA Optics)

Portfolio Manager

JBA Flood Modelling Technology

IFRS Assess and Risk Analyser

Numerix Insurance Suite

PATOne EDM

Quantee Platform

On-Demand CAT Modelling Services on the Oasis Platform

Graci

Riskonnect

FE Solvency II

Grace Connect GRC Suite

Monitaur

DeepCyc

ForeCyc

Metryc

Escali Financials and Escali Supervision

CALFITEC

Quotech Underwriters Workbench

FIS Insurance Risk Suite (formerly known as Prophet)

LCP InsurSight

SS&C Algorithmics for Insurance

True North Data Platform

Balance Sheet Management (BSM)

Economic Scenario Generation (ESG)

MavenBlue Enterprise Pricing Management (EPM)

Optalitix Models and Optalitix Quote

Montoux Actuarial Automation Platform

Iris Actuarial Platform

CyberCube Analytics - Portfolio Manager

R³S Model Packages

R³S Modeler

R³S Process Manager

R³S Development Manager

Decision Focus

Fathom's Product Stack

Capital - Tyche Capital Model & ReMetrica

Incisive Essentials - Concourse

VIPR INTARGA

VIPR Insights - Data Analytics

Zupervise

Protecht ERM

Slope Software

Camms GRC Software

Quantee next-generation insurance pricing platform powered by AI

Oversight360, a Sicsic Solution

RISKflo

End User Computing (EUC) and Model Risk Management Software with Inventory, Discovery and Monitoring Modules

XLAudit Spreadsheet Error Analysis and Data Integrity Software

ClimateMAPS

Financial Results Analyzer

Risk Explorer™

RiskAgility FM IFRS 17 Calculation Engine

Predictable Dynamics

Res-Solver™

RiskAgility Financial Modeller