GIC, India’s largest state-owned reinsurance company, SAP FioniaThe financial services software solutions provider has signed a new agreement to strengthen its compliance with International Financial Reporting Standard 17 (IFRS17).
IFRS17IFRS 15, introduced by the International Accounting Standards Board (IASB), mandates significant changes to the accounting for insurance contracts.
These changes require advanced technological solutions to ensure accurate financial reporting and compliance.
In India, IFRS17 will be implemented as an equivalent to local accounting standards called Indian Accounting Standard 117 (Ind-AS 117).
Ind-AS 117 has been developed in tandem with IFRS17 and requires insurers to explicitly declare unbiased estimates of future cash flows, discount rates that reflect the contractual cash flows, and adjustments for non-financial risks.
Furthermore, revenue is equal to the change in contract liabilities, not premium income.
GIC Re chose to implement SAP Fioneer’s Financial Products Subledger (FPSL) for Insurance to meet the new accounting framework by the April 1, 2025 target date.
FPSL already has a strong presence in the global insurance market, with over 90 insurance and reinsurance groups using its solutions.
With the successful implementation, GIC Re will reportedly become India’s first reinsurance company to comply with the new Ind-AS 117 regulations.
SK Russ
“GIC Re has consistently maintained an unwavering commitment to transparency, accountability and compliance with regulatory changes, which remains our top priority.
We are confident that SAP Fioneer’s software solutions and expertise will enable GIC Re to effectively navigate the changing regulatory environment and improve operational efficiency.”
SK Rath, general manager of GIC Re, said:
Dirk Crews
“GIC Re needed a robust, scalable solution to enable it to meet its regulatory targets for April 1, 2025.
The Financial Products Sub-Ledger (FPSL) is exactly that and we are proud to work with GIC Re to strengthen its leadership position in the Indian reinsurance market and deliver value to stakeholders.”
Dirk Kruse, CEO of SAP Fioneer, added:
About the Author
More information about the author
