United Kingdom

Reporting 

Reporting challenges come from both external and internal requirements. Changes in external reporting requirements can often be the catalyst for finance transformation programmes, especially where the changes are significant such as Solvency II and IFRS Phase II. Internal reporting/ Management information has its own challenges with inconsistent measurements, legacy systems with poor quality data, these are also exacerbated with changes in external reporting. In this section we look at the challenges faced by both.

External reporting

External reporting requirement changes  can require substantial work to be undertaken in terms of:

 

  • understanding the reporting requirements, gap analysis to identify areas of change;
  • developing accounting policies, valuation bases etc;
  • interaction with different teams to ensure capability;
  • rolling out the new processes and education; and
  • analysis of the new results so as to get a proper understanding of the drivers behind and behaviour of the new reports

 

There are a number of changes required under Solvency II, IFRS Phase II, IFRS 4 Phase II ‘Insurance contracts’ and changes to UK GAAP, these changes are intrinsically inter connected and insurance companies will need to coordinate changes in order to prevent reinventing the wheel.  

 

Internal reporting

Internal reporting has its own demands, as key financial metrics in insurance organisations depend on calculated values from complex actuarial models. Problems arise from too many reports, inconsistent measurements, legacy systems with poor quality data, limited line of sight through the reports and the organisation. In short, poor management information (MI) generates significant costs within Finance with little added value to support the business decision making process. Management information covers actuals reporting, budgeting, planning and forecasting.

 

Some of the key challenges for Finance in preparing management reports are:  

 

  • a constantly changing external environment;
  • an unclear vision of plans and forecasts;
  • ad hoc requirements leading to tactical MI development;
  • a lack of technology and tools to support planning and forecasting;
  • a lack of understanding of controllable drivers for the business; and
  • the significant amount of time spent on planning/budgeting/forecasting process due to iterations, review and challenge.

 

KPMG has helped a number of clients identify and define their Key Performance Indicators (KPIs) to support business strategy and designed the supporting business processes to deliver these KPIs.

 

Coming soon: document with more details on Internal reporting.

Contact

Daniel Clark KPMG in the UK

 

Daniel Clark

External Reporting

+44 (0)781 111 1962

danny.clark@kpmg.co.uk 

Brid Meaney KPMG in the UK

 

Brid Meaney

Internal Reporting

+44 (0)782 795 4938

brid.meaney@kpmg.co.uk