Compliance isn’t an exciting topic, but it can cost insurers a great deal of money if you get it wrong, or miss a deadline. With almost three years before the initial IFRS 17 deadline, FWD Group (FWD), a leading pan-Asian life and general insurer, is one of the world’s first insurance companies to start the process of implementation.
FWD has selected Aptitude Software to drive the changes required to deal with accounting standards IFRS 17 and IFRS 9. FWD operates across eight markets whilst managing more than $24bn in assets.
IFRS 17 is widely recognised as one of the biggest change issues in the insurance industry to ever hit CFOs. This global accounting standard affects every insurance company that reports under IFRS. Its purpose is to align insurance company reporting across the globe.
Richard Poon, FWD Group Finance Director said: “In line with our mission to deliver best-in-class insurance in our markets, FWD’s proactive attitude to IFRS 17 and IFRS 9 is designed to empower our future growth. Aptitude Software’s commitment to the Hong Kong and wider Asian market was highly valued, and we were impressed by the amount of “out of the box” IFRS 17-specific intellectual properties.”
The International Accounting Standards Board (IASB) suggests that 450 listed insurers use IFRS standards, which means approximately $13 trillion (£9.8 trillion) of total assets are impacted.
Tom Crawford, CEO of Aptitude Software, said: “We are fully committed to helping insurers manage the incredible complexities of IFRS 17. This is a billion-dollar problem that must be tackled by an industry already under significant pressures. With almost 40% of insurers expected to kick off their implementation projects in Q2 2018, we advise that insurers act now and avoid a potential skills shortage in the market. ”
FWD’s evaluation took place across the last eight months and included leading financial software vendors.
Most insurers are beginning to act as the IFRS deadline creeps closer, but many are still at a very early stage in the planning and implementation process, considering compliance can take between 12-30 months. Aptitude’s Global IFRS 17 Readiness Assessment Report will continue to be published on a bi-annual basis.