The things you need to know:
- The greatest impacts on the insurance technology landscape are expected to be on actuarial modeling and valuation systems as well as financial reporting systems.
- Insurers may be challenged by simultaneous system changes. Developing an appropriate implementation plan may avoid two successive rounds of substantial changes if timing differs from the finalized insurance standard.
- Insurers may need to support multiple reporting platforms and as a result have significant or extended closing processes. Transition planning will need to customize the enterprise resource planning systems.
- Performing ‘high level’ gap analysis may reveal areas where important data is not available from existing processes and systems. Analysis could include trialing data sources and analyzing their ability to draw on models and methodologies for the purposes of the proposals.
- Developing a common understanding of the proposals’ impact will involve many different functions within the organization. Clear and open communication with IT will be vital.
Automating accounting systems and financial processes can have a major impact on the ability to forecast and communicate results with confidence, and free up resources to focus on financial analysis. An integrated change program may facilitate compliance with the new insurance model and reap the benefits of standardization in terms of cost reduction and greater efficiency.