Nicosia, 20/07/2021– Universal Life is choosing the solution SAP S/4HANA® for financial products subledger, insurance option, to initiate a major Finance Transformation process but also address and comply with the requirements and challenges of the new International Financial Reporting Standard for insurance contracts, IFRS 17. SAP channel partners improvIT Global Ltd and AMS-Advanced Management Solutions Ltd are the implementation partners.
One of the key elements of IFRS17 is to improve the quality of Financial Information by incorporating risk assessments with performance metrics. This will provide greater insights into the risks associated with insurance contracts issued and ultimately provide external stakeholders with more pertinent Financial Information to meaningfully understand the insurer’s financial position, performance, and risk exposure. This improved consistency and transparency will ultimately help Insurance Organizations such as Universal Life to improve their governance, strengthen their balance sheets and provide better protection for their policyholders.
The implementation scope includes the solutions of S/4HANA Financial Products Subledger, Profitability and Performance Management and SAP Analytics Cloud. Services include insurance and actuarial data management, IFRS related calculations, integration with General Ledger as well as preparation of all IFRS17 disclosures and financial intelligence reporting.
As part of the Implementation Project Universal Life will also replace their existing accounting solution with S/4HANA Financials. The seamless integration of SAP S/4HANA Financials with Financials Products Subledger for the purposes of IFRS17 will enable Universal Life to leverage synergies with their Accounting and Actuary departments and simplify the processing of complex Insurance products.
IFRS 17 is an International Financial Reporting Standard that was issued by the International Accounting Standards Board in May 2017. It will replace IFRS 4 on accounting for insurance contracts and has an effective date of 1 January 2023.