Compliance can’t be achieved without substantial alignment of supporting IT systems to match new accounting policies, data accessibility and data analytics/reporting requirements. For many insurers, this is the time to question the investment in upgrading legacy point-to-point systems using IFRS 17 as the catalyst to upgrade to a data hub that captures all components of the requirement—allowing for alignment of the data flows for the end-to-end process.
- The complexity of data integration for most IFRS 17 implementations is high given the significant footprint of policy, claims, financial, investments, and reinsurance data usually residing in a variety of source systems.
- The approach to data integration is a key consideration for the IT department because of its broader impact across the technology and data landscape. Those who combine the integration needs of IFRS 17 with the integration needs of other business objectives are able to achieve economies of scale in doing them together, leveraging the same integration strategy and platform.
- IFRS 17 presents a catalyst opportunity for IT to move away from a legacy point-to-point approach and adopt a modern hub approach. This facilitates the data connectivity for IFRS 17 and sets the foundation for data maturity advancement, enabling advance analytics outcomes that leverage the potential of artificial intelligence.
- When looking at the total cost of ownership, agility, maintainability, advancing data maturity, advancing analytics, and being cloud ready, there’s a clear advantage for a data hub strategy versus a point-to-point strategy.
- Given the rich dataset required for IFRS 17, it’s a great opportunity to take a look at your enterprise integration strategy and progressively modernize it through the IFRS 17 initiative.