India’s largest state-run reinsurer GIC has selected SAP Fioneer, a software solution provider for financial services, to enhance its compliance with the International Financial Reporting Standard 17 (IFRS17).
IFRS17, introduced by the International Accounting Standards Board (IASB), mandates significant changes in the accounting for insurance contracts.
These changes necessitate advanced technological solutions to ensure accurate financial reporting and compliance.
In India, IFRS17 will be implemented as the local accounting standard equivalent called Indian Accounting Standard 117 (Ind-AS 117).
Ind-AS 117 has been developed in coordination with IFRS17 and mandates insurers to explicitly declare unbiased estimates of future cash flows, discount rates reflecting the contracts’ cash flows, and adjustments for non-financial risk.
Further, revenue will no longer be equal to written premiums but to the change in contract liability.
To meet the new accounting framework by the target date of 1 April 2025, GIC Re has opted to implement SAP Fioneer’s Financial Products Subledger (FPSL) for insurance.
FPSL already has a significant presence in the global insurance market, with more than 90 insurance and reinsurance groups adopting the solution.
Following its successful implementation, GIC Re will reportedly be the first Indian reinsurer to comply with the new Ind-AS 117 regulation.
“GIC Re’s unwavering commitment to transparency, accountability, and compliance with regulatory changes has consistently been our top priority.
We are confident that SAP Fioneer’s software solution and domain expertise will empower GIC Re to navigate the evolving regulatory landscape effectively, enhancing operational efficiency.”
said S K Rath, General Manager at GIC Re.
“GIC Re needed a robust and scalable solution that would enable them to meet the regulators target of 1 April 2025.
The Financial Product Subledger (FPSL) is exactly that and we are proud to work with GIC Re to reinforce their position as a leader in the Indian reinsurance market while delivering value to their stakeholders,”
adds Dirk Kruse, CEO of SAP Fioneer.
