IFRS17 solution for a speciality commercial lines market leader

A large, specialist insurer with a targeted product set – primarily in commercial lines of business and including cyber insurance – approached us seeking an application to host their IFRS 17 calculation engine. This client was already part way through an IFRS 17 implementation project when they reached out to us, but their business experts had concluded that the selected solution could not meet the project objectives.

Our client needed software that could meet the following key requirements:

• The ability to easily integrate with their Finance, Actuarial and other teams’ databases;
• The flexibility to build bespoke data transformations and IFRS17 calculations precisely as defined by their business requirement documents and prototype Excel models; and
• Functionality that would allow model runs to be triggered from an external source, through the use of an Application Programming Interface (API).

They sought a highly collaborative and adaptable consulting team who could work with their internal team of actuaries, accountants, IT engineers and management consultants to deliver the IFRS 17 calculation components at pace, without compromising quality.

Dynamo was engaged to provide both the technology – Psicle – and the actuarial consulting expertise across IFRS 17. We began with a Phase 1 planning and design engagement, involving detailed walkthroughs of the current processes and development to date. Together, we redesigned and replanned the IFRS 17 process to be implemented in Psicle, including model methodology, reporting and governance functionality and interactions with the client’s other systems; thereby regaining the confidence of senior stakeholders that the fundamental project objective (to be compliant with the IFRS 17 standard by the go-live date) could be achieved.

Phase 2 of our engagement entailed developing the model in line with the agreed scope from Phase 1. We have thoroughly enjoyed working as part of our client’s IFRS 17 programme team and we have successfully:

• Developed data manipulation modules that import data from various source systems to Psicle and perform complex data manipulations to standardise datasets in preparation for the IFRS 17 calculation engine.
• Delivered an IFRS 17 calculation engine in Psicle that reconciles to their prototype Excel models on both the gross and reinsurance bases.
• Built end-to-end automations such that the model can be run end-to-end on demand via an external user interface (outside of Psicle) and users can schedule multiple runs of the model with different predefined inputs.
• Created Psicle exporters that push results datasets from Psicle to the client’s new data mart, based on tightly defined data contracts and with time stamps and validation rules.
• Supported our client in setting up their complex server warehouse and deploying the Psicle model in the various environments for testing.

Our client is now performing multiple model runs on historical valuation periods using different assumptions, to deepen their understanding of the IFRS 17 reporting basis and give comfort to their auditors ahead of go live.