IFRS 17 solution with Calfitec

IFRS 17

The implementation in January 2022 of IFRS 17 on insurance contracts will require integrated, powerful and traceable calculation and modeling tools.

Calfitec for IFRS 17

Calfitec IFRS 17 module is made up of three main calculation schemes.

  • Standard method : BBA with reinsurance ceded

  • Method applied to contracts with PB : VFA with reinsurance ceded

  • Method for contracts with a less than 1 year period of engagement : PAA with reinsurance ceded

This module relies on a data model made up of three Oracle schemes. An SQL Server version is soon to be issued in our road map.

You can make changes in the IFRS17 module in the same way as in the other Calfitec modules.


A global approach for IFRS 17

A seasoned calculation engine : Calfitec

  • Ready to use parameters for IFRS 17 standard
  • Optional modules: SCR/MCR Reserving, Solvency 2 and more

Multi-standard calculation approach

  • Social and tax
  • Solvency 2
  • IFRS 17

Audit trail

  • Traceability of calculations

Simulations

  • Test scenario
  • Data version management

Reporting

  • Financial statements and analysis reports
  • Tailor-made reports

Calfitec: technical architecture

Benefits:

  • Scalability of a Server solution
  • No need to install the software on the computers or laptops
  • Data sharing between users
  • Data back-up
  • Parallel processing
  • SaaS or On Premise licenses

This is a synthetic picture of our IFRS 17 solution which relies on 4 functional workspaces in Calfitec :

  1. Data workspace
  2. Calculation workspace
  3. Reporting workspace
  4. Accounting workspace

Sandbox environments may be exported to other environments in Calfitec.

Intercompany statement

This component is a built-in scheme of calculation in Calfitec IFRS17. From a parameter table giving the group structure, a Calfitec user can reprocess intercompany cash flows. This component allows the intracompany reprocess of every level of the group, including the head company.

This scheme works as follows:

  1. A Calfitec user prepares a parameters file describing the group entities, level entities, held percentage. This file is loaded in the Calfitec database through the files integration component
     
  2. The Calfitec interface enables the user to eliminate intercompany cash flows in order to generate a detailed consolidated cash flow
     
  3. A Calfitec user may follow and control the execution of the process and automatically generate the documentation of this process
     
  4. A status control generates by entity and kind of cash flow the differences of reprocity with the counterpart
     

Accounting space

This component is a calculation scheme built in the Calfitec IFRS 17 module. From a table of accounting entries which gives, by group, the accounting entries scheme for every heading of balance sheet or which have been calculated by Calfitec, an user may generate accounting entries. 

 

ln our solution, this component is able to generate a sub ledger accounting for every level of the group and for the head company. 

 

This scheme works as follows:

  1. The Calfitec user sets a file with the parameters describing the accounting scheme and the fields that will be aggregated
  2. The file is loaded in the Calfitec database through the files integration component
  3. Thanks to the Calfltec interface, the user can start the accounting process which is going to generate a sub ledger accounting (extracted from the items of the balance sheet that are then calculated by Calfitec)
  4. The user may follow and control the execution of the process and generate the correspondent documentation
  5. For each sub ledger accounting a general ledger statement and a balance sheet is generated
  6. A check control validates the balance
  7. If the process is validated, it is then locked, which allows the sign off
  8. Then, the user may run the accounting flows manager to send data to the general ledger

Aggregation

This component is a calculation scheme built in the Calfltec IFRS 17 module. The Calfitec user may aggregate the cash flow amounts from a parameter table giving data fields to be aggregated and the kinds of cash flow for eventual redistribution. ln our IFRS 17 solution, this component allows to go from fine grid to calculation grid .

This scheme works as follows in Calfitec:

  1. The user prepares the parameters file with the field details that will be aggregated.
  2. This file is loaded in the Calfitec database through the files integration component.
  3. Thanks to the Calfltec Interface, the user may start the aggregation processing, which, from fine grid detailed Cash Flows of source table is going to generate calculation grid aggregated Cash-flows.
  4. The user may follow and control the execution of the process and automatically generate the documentation of this process
  5. A status control (entry-exit) is generated, giving, by entity and type of Cash-Flow, the differences between detailed and aggregated amounts. 

Native IFRS 17 plug-in: provision reports

 

Native IFRS 17 plugin: P&L report

In conclusion: Calfitec IFRS 17 plugin main strengths

  • This module is available for demonstration and proof of concept
  • Strong adaptation capacity to future IFRS 17 evolutions
  • Calfitec engine has been  used by our customers for more than 12 years
  • Reasonable pricing
  • Global solution or tactical alternative
  • SaaS or On Premise
  • Adapted to accounting requirements (audit trail, documentation…)
  • Natively multinorm
  • Scalability
  • Easy to deploy, quick adoption by users
  • Sinalys experts for 3 regulatory norms (social, S2, IFRS)  in actuarial science, accounting and  data processing

Want to know more about the capabilities of our IFRS 17 module?