Given the nature of the financial industry, it is only inevitable that standards and compliance are constantly changing. For banks, insurance firms, and other similar institutions, one of these is IFRS 17, which is set up to take the place of IFRS 4 in terms of accounting standards for insurance contracts.
IFRS 17 compliance will also affect actuarial and reporting practices across any financial institution. To better accommodate these changes, your business needs to look into possible IFRS 17 software solutions to implement all changes by January 2022. Adapting new software or updating their current applications can help them get past the hurdles and challenges posed by implementing these changes.
What Are Some Implementation Challenges Presented by IFRS 17?
Though IFRS 17 implementation does offer a bevy of benefits, it does come with its own set of challenges. Unfortunately, many financial firms struggle to prepare for the implementation of IFRS 17 Standards for a number of reasons. Under this new set of requirements, several intensive changes have to be made to standard operating procedures, and these all require a lot of preparation and planning. Implementing this standard also entails extensive planning, strategizing, and assessment.
As institutions work through the implementation timeline, though, it is likely that other issues will come to the forefront. For one, each new stage can heavily affect data management capabilities on the day of implementation. To accommodate the necessary changes, additional storage space, automated controls, and workflow improvements must also be put into place.
As a result, transitioning to IFRS 17 can place quite a strain on the various departments of any given company. Fortunately, one way to overcome these challenges is to digitize everything through a comprehensive and modern software solution that meets your needs.
How Can a Software Solution Help You Achieve IFRS 17 Compliance?
Regulatory technology has improved drastically over the last few years, which is why many financial institutions have come to rely on them to simplify the process. Your own company can also take advantage of these systems to expedite your transition to IFRS 17. Here are a few compelling ways that a robust software solution can help:
It Can Help Prevent Corruption While Promoting Transparency and Accountability
Before the advent of technology, legacy silo systems required more manual work. This is not only inefficient and prone to more errors, but it also provides opportunities for potentially dishonest employees to game the system. It’s also likely that your current legacy software is outdated, which makes it more vulnerable to attacks from cybercriminals who have figured out the weaknesses of such systems in the past.
As such, it is important to switch to a solution that can be programmed for IFRS 17 standards as soon as you can. Doing so will help streamline the process while ensuring that employees are on the same page across the firm. Implementing new software will make everyone aware and more responsible for the work that they do, too.