WALLDORF — SAP SE (NYSE: SAP) today said it has completed the first phase of the co-innovation project with reinsurer Swiss Re that supports multi-GAAP accounting processes for financial instruments and insurance contracts. The system is able to generate multivaluations, including International Financial Reporting Standards (IFRS) 17.
The core of this solution is a multi-GAAP accounting engine that is complemented by a module supporting the preparation of estimated cash flows, which are provided by actuarial upstream systems. The solution has enhanced processing of actual payments and business transactions. In addition, new processes have been introduced to manage the requirements of economic valuations driven by future estimated cash flows, which are, for example, required by IFRS 17.
“We have combined forces with SAP to create a system based on SAP HANA to address the increasingly complex demands related to financial steering and reporting of insurance companies from regulators across the globe,” said Gerhard Lohmann, CFO Reinsurance at Swiss Re. “The solution will use a simple accounting and steering approach to run multiple valuations concurrently.”
SAP and Swiss Re, one of the world’s largest wholesale providers of reinsurance, insurance and other insurance-based forms of risk transfer, first announced their co-innovation project in February 2017.
Further development phases will focus on extending the solution for financial analysis and steering. Planned functionality includes forecasting, planning and simulation for a number of different scenarios.
Luka Mucic, SAP CFO and member of the Executive Board of SAP SE, added: “We are proud that together with Swiss Re we developed a strategic platform that allows insurance carriers to manage increasing regulatory complexity, while easily incorporating new valuations and reporting standards such as IFRS and U.S. GAAP. With complex regulatory standards on the rise, this co-innovation project will help the industry better support core accounting and steering processes.”
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Source: SAP ERP News