Insurance companies which follow International Financial Reporting Staandards
need to implement the new standard named IFRS 17 for Insurance Contracts.
The current insurance systems generally are not equipped to handle this new requirement.
Hence insurance companies need a new system to take care of the new reporting requirements
involving detailed calculations.
This system would do the calculations for
- grouping of contracts into onerous, non-onerous etc.,
- computing the fulfilment cashflows for groups of contracts
- computing the Contractual Service Margin (CSM) to be taken to the Balance Sheet every reporting period
- determining the amount of Contractual Service Margin to be released to the Profit or Loss account every reporting cycle
- Reconciliations for Disclosures to be reported for various values in the Profit or Loss and the Balance Sheet