Overview of the Region
With the launch of International Financial Reporting Standard no 17 (“IFRS 17”) by the IASB in 2017, there has been a sense of urgency from regulatory bodies globally towards feasible adoption approaches. One of the main hurdles is data and IT systems, which is why the regulators within the GCC drafted regulations asking for GAP analysis as a measure of first resort. We were involved in the GAP analyses for our clients in both the UAE and KSA. With more GAP analysis related regulations expected from the Bahraini and Omani regulators, GCC has welcomed IFRS 17 as the future.
Our Credentials as IFRS 17 Consultants
For the purpose of conducting GAP analysis sessions, Lux partnered with an audit firm which has been successful with VAT implementation across the GCC. With the audit partner, we have provided tailored services to all our clients including:
- Initial training sessions with management teams
- Ensuring timely submission of regulatory deliverables
- Presentation of GAP analysis results to Senior Management and Boards
Our clientele is composed of a mix of insurers. We have worked with a variety of companies including Takaful, Non-Life and Life Insurance companies for IFRS 17 implementation. In addition, prior to regulatory submission within the UAE, we also arranged a seminar on IFRS 17 in collaboration with the Emirates Insurance Association with significant participation from across the insurance industry.
At Lux, we strive to provide our clients with the best service and not just to meet the regulatory requirements. With several clarifications from the IASB and clarifications expected from local regulators, IFRS 17 might seem like a moving target but at Lux, with our specialist team of Fellows and Associates, we deliver the best.
Two specific examples:
A-Rated Composite Insurer
Lux Actuaries performed IFRS 17 GAP analyses for an A-rated composite insurer with a significant life portfolio. We performed a comprehensive GAP analysis and covered all aspects of business from Pricing to Claims and from Finance to IT. When the results of the GAP analysis were presented to the CEO, he was impressed with the depth of work and appreciated Lux’s role in pointing out significant gaps which will help the Company not only from an IFRS 17 perspective but also from a day to day business activities point of view.
Lux Actuaries performed a GAP analysis for a Takaful company. We commenced our scope with a presentation to the Company’s management as well as all employees who are directly impacted as a result of adopting the standard. We received positive feedback from the management on commencement of the presentation. A particular comment from the meeting was: “Some speakers make boring topics exciting and others make exciting topics boring!” Hopefully they meant we made challenging topics straightforward!
The GAP analysis for this client was comprehensive and contained significant depth considering the Company’s core business model is Takaful. Upon finalization, a presentation was made to the Board and the gaps explained.