FIS signs multi-million deal with South Korea’s KB Insurance to implement IFRS 17. The partnership is one of the world’s first to turn IFRS 17 plans into action.
FIS, a global leader in financial services technology, has signed a pioneering deal with KB Insurance to help the South Korean insurer implement the new International Financial Reporting Standard for insurance contracts (IFRS 17).
With the accounting regulation coming into force in 2021, this will be FIS’ first strategic partnership in support of IFRS 17 compliance and the first time FIS applies the specially updated functionality of its market-leading Prophet solution. It will also be one of the first projects globally to turn a firm’s IFRS 17 plans into action.
The new standard requires insurers to value their insurance contracts on current fulfillment value, not book value, which industry experts predict will raise debt balances for Korean firms rise to unprecedented levels, especially to life insurance companies due to high interest rate product block sold in the past. By upgrading its risk management platform to FIS Prophet Enterprise and working with FIS, KB Insurance will be in a stronger position to not only achieve compliance but also manage its business more effectively.
“As a Prophet client of many years, KB Insurance is relying on FIS’ industry-leading solutions and regulatory expertise to help achieve compliance with IFRS 17,” said J.P. James, head of FIS’ insurance business. “Through its enhanced levels of governance and control, and new, IFRS 17-ready functionality, Prophet Enterprise provides the robust technology that firms need to manage the operational challenges that this new insurance regulation will introduce. We look forward to working closely with KB Insurance on what is sure to be the first of many IFRS 17-related projects in South Korea and around the world.”
“I expect this IFRS17 project to lead KB Insurance to the next level. Using this partnership as a stepping stone, I would like to position KB Insurance as one of the most competitive insurance companies in Korea and the region”, said Jonghee Yang, CEO of KB Insurance. “I have no doubt that FIS will be able to provide the best IFRS17 actuarial solution, not just in Korea but also in the world.”
KB Insurance has led the domestic insurance industry for 57 years since its establishment in 1959. As the most preferred insurance company providing optimum protection against risk and an integrated consulting service, KB Insurance provides customers with a feeling of security and hope in their personal life and their business. The business scope of KB Insurance currently covers the financial, real estate and service industries, so that each of the operation divisions and branches nationwide can carry out asset management and provide a whole range of insurance products, which constitutes fire, marine, special, car, long-term, personal pension and retirement insurance. KB Insurance became one of the KB Financial Group’s affiliated companies in June 2015 and was thereby given the opportunity to take a leap to the level of a first-class insurance company. For more information about KB Insurance, visit www.kbinsure.co.kr.
FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 55,000 people worldwide and holds leadership positions in payment processing, financial soft04ware and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.