Aon unveils new IFRS 17 solution to bridge gap between risk and finance
Re/insurance broker Aon has launched an IFRS 17 (International Financial Reporting Standard) solution on its capital modelling platform to help insurers fulfil their reporting obligations.
The new solution is designed to support actuaries by automating calculations and cash flow projections with flexibility and a transparent audit trail. They can also help carry out an eligibility test for the simplified model and identify if a contract is onerous and track its account balance over time.
According to Aon’s analysis, over 1000 re/insurers worldwide are implementing IFRS 17, issued by the International Accounting Standards Board, to bring a more unified way of sharing financial results. This process is often led by a re/insurer’s finance department but actuaries in risk departments play a critical role in calculating and reporting insurance reserves, reinsurance recoverables and forward-looking profitability.
The increased volume of data and complexity of calculation required for IFRS 17 mean that actuaries can no longer rely on manual processes and spreadsheets as they feed business-critical inputs into accounting systems. As a result, insurers need to invest in new technology to bridge the gap between risk and finance.
“The new solution helps to bring finance and risk departments closer together to deliver more accurate reporting under IFRS 17. These outcomes go beyond a regulatory checklist to help strengthen insurers’ capital, reinsurance programs and ratings that will ultimately optimise the new balance sheet and profit & loss,” said Milena Lacheta, IFRS 17 lead at Aon’s Reinsurance Solutions business.
Paul Maitland, head of Aon’s ReMetrica team, added: “Aon’s ReMetrica technology can be leveraged in new ways to address the requirements of IFRS 17 implementation. As part of Data & Analytic Services, the ReMetrica team was able to invest in developing the new IFRS 17 components which can now be scaled and used with insurance companies all over the world.”
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Pool Re secures £40m non-damage BI retro cover led by Liberty
Christchurch City Council looks to ILS to increase insurance cover
Stephen Catlin's new re/insurer Convex partners with WNS
Canopius seeks Asia Pacific growth; gains binding authority approval from Lloyd’s
Brit taps AIG, NAS executives to grow cyber & technology practice
Save £600 with the Intelligent InsurTECH Europe Super Early-Bird rate: Book now
