IFRS 17 Projection & Budget Tracking Tool

The Challenge

Although IFRS 17 has been in effect for several years, many companies struggle to communicate the performance of their insurance contracts to non-technical stakeholders. Salespeople and those assessing distribution channel performance were struggling to effectively evaluate which channels were meeting key business goals, as these goals are more easily assessed using traditional IFRS 4 terminology. Key individuals responsible for business growth preferred an overall performance view based on terminology they understand.

Our Solution

We developed an interactive model that generates a budget at a consolidated view on both an IFRS 17 and traditional basis, as well as a traditional view at the distribution channel level. The model tracks actual performance relative to budget on both bases, and forecasts performance to the end of the financial year based on past experience with manual adjustment capabilities. Results are displayed on a dashboard allowing clear communication to stakeholders with different levels of technical understanding.

The Results

The solution allows the client to compare differences between IFRS 17 income statements and traditional views, bridging the gap between technical jargon and readily understood terminology. Management can track the performance of distribution channels against budget and monitor KPIs throughout the year, aiding in future business decisions.

Combining IFRS 17 and traditional components in a central model allows performance conversations to happen more easily. The solution ensures consistency and clarity in strategic business decisions, aligning expectations between key stakeholders and providing value regardless of their IFRS 17 technical understanding.