Background
A large South African insurer had selected a software provider as the supplier for their IFRS 17 solution. A number of the provider’s components were already embedded as the modelling engine for their life insurance business, and their IFRS 17 solution seemed to be the best fit in terms of addressing the data and storage requirements of the new accounting standard.
The initial quote for implementation of the software – excluding ongoing fees – was considerably above budget, so the insurance provider approached MBE for advice on how to reduce the outlay while still achieving the desired outcome of a complete and efficient IFRS 17 solution.
As the trusted implementation partner for the insurance provider, MBE’s deep understanding of the business, combined with more affordable day rates and experience in similar projects, led to a reduction in total estimated spend by 62%.
Objective
Reduce the estimated spend for an IFRS 17 solution while ensuring that it would still be complete, efficient, and suited to the business needs.
How we did it
Having received the initial quote from the software provider, the insurance company approached MBE for advice. Through MBE’s understanding of the business, we were able to recommend questions to pose to the vendor around what precisely would be included in the solution and how they arrived at their numbers. These questions, together with negotiation by the insurance provider, led to the issuance of a more bespoke quote giving an approximate 45% saving over the original quote.
This was still an implementation estimate over and above what they were already paying for use of the provider’s software components and excluded the ongoing annual maintenance fees that would also need to be considered.
It was then that the insurance provider engaged MBE to deliver a series of workshops to delve deeper into their specific requirements and the details of the quote, to untangle tasks which could possibly be completed by MBE rather than the vendor, and to provide recommendations on what the essential and non-essential elements of the quote were.
MBE has been working with the insurance provider for several years, and because of this partnership, MBE already had an in-depth knowledge of the insurance provider’s business and requirements. The software vendor also participated in these workshops, and a combination of the expertise of the three entities involved ensured that any decisions taken would be based on complete and informed input.
Following these workshops, MBE produced a report, which recommended that MBE and the vendor work together to implement the best solution to the insurer, at the best value. With MBE providing the bulk of the service, and the software vendor retaining tasks such as setup and training, MBE was able to reduce the total initial quote by 65%.
Contact our team to find out more about how we can help you with your IFRS 17 implementation project.
