IFRS 17 - Challenges and

Observations during
Implementation
- Wendy Wibowo & Edwin Jingga -
 WORK EXPERIENCE
Head of Actuarial / Appointed Actuary
PT Great Eastern Life Indonesia
July 2015 – now (7 years, 2 months)

Actuary Manager
PT Asuransi Allianz Life Indonesia
May 2008 – June 2012: Responsible for products pricing
April – July; November – December 2010
• Global Actuarial Development Program, Allianz Group, Munich
• Assignment to Global Life Unit, Allianz Group, Munich
Nurdin Kosasih March 2002 – June 2007: Responsible for valuation reporting

(Moderator) CERTIFICATIONS
FSAI (Reg. 2009101288) – 10 Aug 2009
FIIS (Reg. A/679/10/2021) – 7 Oct 2021

EDUCATION HISTORY
Magister Sains (MSi) in Mathematics
University of Indonesia (2012 - 2014)
Sarjana Sains (SSi) in Mathematics
University of Indonesia (1998 - 2002
 WORK EXPERIENCE
IFRS 17 Project Lead
PT Prudential Life Assurance Indonesia
2020 - now
IFRS 17 Implementation Lead
PT Sunlife Financial Indonesia
2019 - 2020
Consultant
Financial Services Entities (United Kingdom)
2014 - 2019
Wendy Wibowo
CERTIFICATIONS
(Speaker) Chartered Accountant (CA)
The Professional Body of CAs (ICAS)
2017

EDUCATION HISTORY
Master of Science (MSc) in Finance and Investment
Institution: University of Edinburgh Business School
2013 - 2014
 WORK EXPERIENCE
Head of Actuarial in IFRS 17 Reporting
PT Prudential Life Assurance Indonesia
2019 – now
Corporate Actuarial in IFRS 17
PT Prudential Corporate Asia (Taiwan)
Oct 2021 – Mar 2022
Business Actuarial
PT Sunlife Financial Indonesia
2017 - 2019
Edwin Jingga
CERTIFICATIONS
(Speaker) Fellowship of Actuaries of Indonesia (FSAI)
Persatuan Aktuaris Indonesia (PAI)
2018

EDUCATION HISTORY
Bachelor of Science (BSc) in Mathematics
Institution: University of Indonesia
2013 - 2017
 1 Implementation Framework

2 Overview & Impacts of IFRS17

Agenda
3 Challenges – IFRS17

4 Recommendation on Challenges
 Implementation Framework

Impact Solution Parallel Operate

Build Test Optimization
Assessment Design Run & Review

Technical Interpretation & Updates

People, Training & Communications

 Observation & Impacts
of IFRS17
Consistent Accounting

IASB Intention Updated Information on Contracts

Increased Transparency

Profit Profiles will change

Impacts to Insurer Revenue and Profit are spread over the lifespan of contract

Expanded Disclosure Requirements

 Challenges – IFRS17

IFRS17 Requirements Highly Granular Data Complex & Longer Process Significant Investment
- Evolving Technical - Granular Reporting & - More iterative calculation - Complexity &
Interpretation Disclosure Requirements - Controls, Reconciliation & Granularity driving
- Dynamic & Agile - Increased volumes of Auditability system cost
- Evolving Technological data - Automation & Efficiencies - Expertise required costs
Solutions - New data fields &
source systems
 Technical Interpretation
Challenges
Unit of Account
Granularity
Disclosure
Assessment
Contractual
Profitability Status
Service Margin

Coverage Unit IFRS17 Transition

Approach

Measurement
Expense Treatment Approach
Contract Contract
Boundaries Combination
 Challenges on Technology

Data Availability Solution Design Data Storage & Processing

- IFRS17 requires cashflows
transaction data at policy
level
- Policy administration needs to
be enhanced
- Some transactions are
recorded at business unit level
- Solution must be designed to
obtain accurate data from all
source data on time
- Solution need to process large
amount of data in short period
of time
- Adding computing capacity
for storing & processing
requires significant investment
- Limited service providers on
IFRS17
 Recommendation on Challenges
Technical Position Tests
- Maintain constant engagement with - Perform end-to-end integration testing as
auditors & regulator early as possible to identify potential
- Perform Financial & Operational disconnects among components
Impact Assessment - Provision sufficient & adequately skilled
resources for the review and validation
on the outputs and business results
Governance & Project Management
- Clearly define project structures
upfront, including key resources,
decision makers & reporting
governance to enable quick
turnaround on decisions, review &
approval

Build Optimization
- Dedicated development teams & - Monitor & track run-times as well as incorporate
resources required to perform the ongoing periodic review of processes to further
builds on agile basis automate & optimize base solutions
The Best Preparation is to Start Now!

Thank You!
Credit to: Elvina Vania Saputra, ASAI