Case Study: How we fast tracked a leading insurer’s IFRS 17 transition preparation

The Challenge

Our client urgently needed support in their IFRS 17 transition preparation for two of their main portfolios. 

These portfolios were to be valued using the full retrospective approach, meaning looking back to historic models, data and assumptions to ensure that the IFRS 17 Best Estimate Liability (BEL) calculations could be accurately performed.

The time required to perform these validations and calculations led to the client engaging MBE enabling their permanent in-house actuarial resources to focus on their daily tasks and other project work.

The Client

Our client is a well-established pan-African financial services company that provides a diverse range of financial and insurance solutions for retail and corporate customers.

We can now focus on the next phase of transition work. We are excited to get that going, with the help of MBE.

Finance Manager, Old Mutual Namibia

The Approach

  • Cooperation and collaboration
    • MBE worked closely with both the relevant Valuations team and the IFRS 17 Transition team to extract the information required and understand the runs and validations that needed to be performed.
  • Listening to requirements
    • Given that they had performed similar tasks for other portfolios, the client had established a set of project goals and milestones.  The MBE team used this outline as a basis for their project plan and held themselves accountable by scheduling regular updates with the client to discuss progress according to the plan.
  • Utilisation of modelling expertise
    • The MBE team thoroughly tested the validity of historical Prophet models going back ten years.
  • Documenting results
    • Success at each milestone was evidenced in Excel artefacts prepared by the client for this purpose, ensuring that the process was fully auditable.

The Results

The client was able to perform their IFRS 17 transition calculations for these portfolios, employing the historic liability models that had been modified and validated for IFRS 17 use by MBE.  At the same time, the client was able to progress other BAU and project work, knowing they could trust and rely on MBE to successfully complete the project.

This has been a really successful collaboration. MBE was very responsive, willing and eager to listen to the team’s requirements. The MBE team worked well with both the segment and the IFRS 17 transition teams. We brought the MBE team onboard at just the right time, enabling us to meet critical deadlines.

IFRS 17 Transition Workstream Lead

Pamela Hellig