With the International Financial Reporting Standard for insurance contracts (IFRS 17) coming into force in 2021, KB Insurance is one of the first insurers in the world to translate IFRS 17’s requirements into its actuarial valuation models. To this end, KB insurance has been working closely with FIS and EY to implement FIS’ industry-leading actuarial software solution Prophet Enterprise as an end-to-end risk management platform.
“Through its enhanced levels of governance and control, and new, IFRS 17-ready functionality, (Prophet IFRS 17 module: IFRS 17 Group Calculation Library), Prophet Enterprise provides the robust technology that insurance firms need to manage the accounting standard’s operational challenges,” said Lawrence Choe, senior vice president, managing director of FIS’ APAC insurance business. “Having been named technology provider of 2017 by Asia Risk magazine, we will continue to work closely with partners across the APAC region to strengthen and support compliance.”
Collaborating with FIS on the model implementation at KB Insurance, EY has adopted four key principles:
(1) developing a limited number of master product codes through product grouping;
(2) taking a parameterized and table-driven approach to product benefit and assumptions;
(3) establishing a calculation loop structure for different reporting purposes, based on one set of projection variables but different projection assumptions; and
(4) setting a clear, consistent modeling standard to avoid unnecessary data read and model calculation processes.
By following the four key principles, EY will provide our clients with an actuarial model to meet the requirement around:
(1) robustness and efficiency;
(2) ease of maintenance;
(3) consistency and scalability; and
(4) integration with finance and other systems.
“Thanks to EY’s and FIS’ combination of modeling expertise and regional knowledge, and FIS’ software solutions, the actuarial models have already exceeded our expectations of efficiency,” said Yi Yumun, chief actuary of KB Insurance. “As the first to adopt Prophet’s IFRS 17 calculation module, KB Insurance has successfully carried out the first stage of this implementation. In light of FIS’ recent win at the Asia Risk Awards, we are now even more confident that Prophet will help us meet all our IFRS 17 objectives.”
“KB Insurance’s IFRS 17 project is well on track for successful completion soon,” confirmed EY’s Asia Pacific Insurance Leader Jonathan Zhao. “As a result, KB Insurance will be in a stronger position to not only achieve compliance, but also manage its business more effectively. EY, as one of the global leaders for accounting services and an actuarial modeling advisor, will continue to strengthen collaboration with actuarial system vendors, such as FIS, to serve our clients in the region and globally.”
FIS™ is the world's largest global provider dedicated to financial technology solutions. FIS empowers the financial world with software, services, consulting and outsourcing solutions focused on retail and institutional banking, payments, asset and wealth management, risk and compliance, trade enablement, transaction processing and record-keeping. FIS’ more than 53,000 worldwide employees are passionate about moving our clients’ business forward. Headquartered in Jacksonville, Florida, FIS serves more than 20,000 clients in over 130 countries, and our technology powers billions of transactions annually that move over $9 trillion around the globe. 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.
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. EY served more than 200,000 innovative and exciting companies worldwide, including 80% of Fortune Global 500 companies and 67% Fortune Global 2000 companies. The collective intelligence of more than 200,000 professionals in 150 countries is one of our key assets - and it grows every day as we see, learn and do more.
The Actuarial Advisory Service line has over 1000 actuarial professionals globally and is one of the largest actuarial modeling advisory team worldwide. Combining the experience of our dedicated actuarial and risk professionals and close partnerships with related practices across EY, we provide truly integrated services across all disciplines in the insurance industry. Regarding to full scale IFRS17 implementation, EY has played a global leader role as providing from actuarial modeling advisory to the end-to-end solution in the region and globe wide. For more information about our organization, please visit ey.com.