Overview

A Zurich-based global re/insurer faced significant challenges in managing and reporting financial data across various regulatory standards and valuation methods. These complexities resulted in increased operational costs, process redundancies, and compliance risks, particularly under new standards like IFRS 9 and 17.

Challenge

The client struggled with the sequential and redundant nature of financial valuations required for reporting under diverse regulatory frameworks (IFRS, US GAAP, STAT, and EVM). This inefficiency not only hindered timely decision-making but also posed challenges in maintaining compliance and producing reliable financial information.

Solution

In collaboration with SAP, our consultancy undertook a co-innovation initiative aimed at revolutionising the client’s financial management processes. Leveraging the SAP HANA® platform, we developed a solution to automate and streamline financial steering and reporting activities. This solution enabled the client to generate multiple valuations efficiently while ensuring compliance with regulatory requirements.

Implementation

Key enhancements included: 

  • Automation of financial reconciliation cycles
  • Creation of a unified, integrated general ledger for standardised reporting
  • Implementation of a consolidated Management Information System (MIS) for improved reporting consistency and timeliness
  • Integration of robust checks and balances to ensure auditability and reliability of financial statements

Outcome

The implemented solution resulted in transformative outcomes:

  • Enhanced compliance with multiple regulatory standards (IFRS, US GAAP, STAT, EVM)
  • Simplified financial reconciliation processes, reducing operational complexities
  • Improved efficiency in financial reporting, supporting faster decision-making
  • Significant reduction in operating costs associated with reporting and compliance

Conclusion

By adopting our innovative approach and leveraging SAP technology, the re/insurer achieved a substantial improvement in financial management and reporting capabilities. The project not only enhanced operational efficiency but also strengthened the client’s ability to navigate complex regulatory landscapes with confidence. This case exemplifies our commitment to driving impactful change through strategic co-innovation partnerships.