KPMG helps insurers tackle IFRS 17 with SAS engine and Allianz methodology

KPMG IFRS 17 Express – powered by SAS helps insurers confidently accelerate IFRS 17 compliance, building on Allianz's market-tested approach

CARY, N.C., April 13, 2022 /PRNewswire/ -- The clock is ticking on International Financial Reporting Standard 17 (IFRS 17), the January 1, 2023, compliance deadline drawing ever closer. For insurers around the globe struggling with self-development or "empty box" software solutions, there is a new path forward: KPMG IFRS 17 Express – powered by SAS^®. The IFRS 17 solution blends KPMG's deep IFRS experience, SAS' best-of-breed analytics and an IFRS 17 methodology globally tested by Allianz, one of the world's leading insurance groups with customers in more than 70 countries.

"There's no need to reinvent the wheel or duplicate effort," said Christian Knoller, IFRS 17 Project Lead at Allianz. "Insurers can take confidence in leveraging a predefined IFRS 17 methodology and technology that encompasses the expertise of three market leaders and industry-leading practices."

Built on the existing SAS Solution for IFRS 17, KPMG IFRS 17 Express is intended to deliver a cost-effective approach that can greatly reduce IFRS 17's computational burdens with pre-configured options for automation and integration. Designed to foster collaboration among actuaries, risk managers and finance teams, the solution provides:

• Fully functional IFRS 17 contractual service margin calculation and posting engine, inclusive of past, current and future reporting periods.
• Predefined data models and wide-ranging postings built to manage a broad range of insurance and reinsurance products available worldwide.
• A structured workflow process within a single, integrated platform, ensuring traceability, auditability, and transparency.

"While the IASB amendments to IFRS 17 were intended to ease implementations, the pandemic challenged compliance efforts, and many insurers aren't where they want, or need, to be," said Mary Trussell, Insurance Accounting Change Lead, KPMG International. "Through our combined financial and risk management experience, SAS' award-winning IFRS 17 technology, and a methodology tested by Allianz, insurers can leapfrog delays and capability gaps and accelerate their IFRS 17 compliance journeys." 

International financial reporting standards set common standards for the preparation of financial statements, making public companies more comparable globally. Billed as the first truly global accounting standard for insurance contracts, IFRS 17 will replace the current standard, IFRS 4, and increase financial transparency. While most affected countries are required to comply with the new standard by January 1, 2023, some countries, including several in Asia, will be afforded more time to prepare.

Whatever the compliance deadline, IFRS 17 will change how insurers calculate insurance liabilities and report profit or loss, compelling them to report with greater transparency how insurance and reinsurance contracts affect finances and risk. For most insurers, compliance with IFRS 17 will require significant investment in new or upgraded technology – but KPMG IFRS 17 Express – powered by SAS gives them an efficient and cost-effective alternative that is every bit as thorough and robust as a customized solution.

"IFRS 17 brings material changes to the way insurance companies calculate, manage and report on their financial exposures and risks. These changes require the right operating models, methodology, and technology to be successful," said Troy Haines, Senior Vice President of Risk Research and Quantitative Solutions at SAS. "Bringing together knowledge and practical real-world IFRS 17 experience from SAS, KPMG, and Allianz gives insurers of all sizes exactly what they need: a fast lane to IFRS 17 compliance and a clear avenue for future growth."

To learn more about IFRS 17 Express, request a demo at home.kpmg/ifrs17express.

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ("KPMG International") operate and provide professional services. "KPMG" is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.

KPMG firms operate in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

For more detail about our structure, please visit home.kpmg/governance.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The Allianz Group is one of the world's leading insurers and asset managers with 120 million private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. 

SAS is the leader in analytics. Through innovative software and services, SAS empowers and inspires customers around the world to transform data into intelligence. SAS gives you THE POWER TO KNOW^®.

SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2022 SAS Institute Inc. All rights reserved.

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