The project:
The aim of the project was to implement SAP FPSL (Financial Product Subledger) for insurance companies in order to map the IFRS 17 accounting standard. The challenges were considerable, as both the primary insurance and reinsurance units and their divisions had to be connected and embedded within the specified timeframe. In addition, specific local requirements had to be taken into account. Furthermore, simulation and forecast functionalities were utilized and implemented in FPSL.
Our approach:
A team with diverse expertise was crucial for the successful implementation of the project – from installation and technical modelling to testing, various skills were required.
The client pursued a centralized approach so that the approximately 130 company codes of the insurer and reinsurer (including the local units) worked within a central (FPSL) system. This involved managing the complexity of data flows from all lines of business and their approx. 40 systems.
Over time, the focus changed from "implementing requirements" to "increasing stability and improving performance" in order to ensure stable and fast quarterly closures in the fast close.
Features of the final solution are:
- Ensuring operational efficiency and full transparency with regard to IFRS 17
- All measurement approaches of IFRS 17 (VFA, GMM, PAA), Primary & ReInsurance Business with 4 target pictures each (Simulation, Actual Group Closing, Forecast and Local Specifics) are used
- Quick access to critical data for decisions, such as balance sheet, P&L and forecast information
The result:
Despite the challenges, the project was completed successfully and on schedule.
The most important successes of the project:
- Timely implementation of IFRS 17
- Ensuring the high quality of the financial statements
- Successful introduction of FPSL for IFRS 17 across the entire group of companies
- Provision of a centralized IT system for IFRS reporting for consolidated and local separate financial statements and Group forecast
- Stable IFRS 17 almost close financial statement preparation processes
