zeb.control.accounting IFRS 4

Transcription

1 zeb.control.accounting IFRS 4 Product information and scope of services Muenster, June 2016

2 1 Software zeb.control.accounting IFRS 4 2 zeb service offer for accounting zeb.control.accounting.ifrs.4 Product information - 2

3 Data Data Logic Logic Analytics Analytics zeb.control: modular software suite with the four standard content areas regulatory (1), accounting (2), risk (3) and financial (4) Structure of the zeb.control software suite Standard Content zeb.control.strategy = Focus of this product information Enterprise Modeling zeb.control.intelligence Management Cockpit Group Control Report Designer zeb.control. regulatory zeb.control. accounting zeb.control. risk zeb.control. financial Individual Configuration Solvency II: Pillar 1 Pillar 2 Pillar 3 IFRS 4 IFRS 9 Hedge Accounting ALM Portfolio Risk Credit Risk Financial Controlling Adaptable Processes zeb.control.calculation Individual Algorithms zeb.control.data.management Data Integration zeb.control.accounting.ifrs.4 Product information - 3

4 Data Logic The IFRS 4 module of the proven zeb.control software suite meets all the requirements of the future IFRS accounting standards for insurance obligations Range of services of the software module zeb.control.accounting IFRS 4 2 zeb module IFRS 4 zeb.control. accounting Accounting based on the building block approach (BBA) (Standard model) Accounting based on the premium allocation approach (PAA) (Simplified approach) Accounting of reinsurance contracts (For proportional and non-proportional reinsurance) 4. Accounting based on the variable fee approach (For contracts with direct profit participation) IFRS 4 5. Scenario management (Support of simulations and sensitivity analyzes) zeb.control. calculation Corporate planning (Planning of technical provisions) Aggregation mechanisms (Aggregation of the calculation level for actuarial provisions) zeb.control.data. management Allocation mechanisms (Distribution of aggregates on more granular levels) Posting record logic (IFRS 4-compliant posting record logic) 10. Disclosures (Breakdowns, such as a provisions analysis, for notes) zeb.control.accounting.ifrs.4 Product information - 4

5 The zeb software IFRS 4 represents a complete actuarial sub ledger due to the modularity, a perfect integration into existing system environments is possible IFRS 4 system definition and potential target architecture (schematic) = zeb.control functionalities Source systems Actuarial modeling IFRS 4 measurement and sub ledger General ledger and group consolidation Reporting Optional: Legacy systems Central modeling platform IFRS 4 measurement General ledger (e.g. SAP) IFRS financial statements Asset management systems Local or division solutions (e.g. Prophet, ResQ,...) IFRS 4 sub ledger Group consolidation (e.g. ECCS; Tagetik) Notes Local GAAP MS Office Solvency II Local data management (division or country DWH) Integrated data management (finance/risk/control DWH) Optional: Internal reports zeb.control.accounting.ifrs.4 Product information - 5

6 Completely predefined data and process model as well as measurement and accounting logic allow fast and resource-efficient software implementation Highlighting features of zeb.control.accounting IFRS 4 1 Functionally and technically completely predefined software solution Functional and IFRS-compliant measurement and booking logics including actuarial methods are provided as standard content. A company-specific development of measurement and booking logic is not required. zeb.control provides an integrated and functionally fully predefined data and process model for IFRS 4 phase II, with regard to IFRS 9 and Solvency II. 2 Low implementation effort zeb offers fast and cost-effective implementation by providing a completely predefined data and process model as well as corresponding IFRS-compliant measurement and booking logic. Ensuring a fast and resource-efficient know-how transfer from zeb to the departments (accounting / actuarial services) and IT by completely predefined use cases for IFRS 4 3 Modular infrastructure of standard software zeb.control Modular design of the standard software zeb.control enables precise integration into the existing system architecture of the insurance company. Proven software solutions (e.g. for actuarial modeling or consolidation) can still be used. Resource-efficient implementation, as there are no fundamental changes to the existing system landscape. 4 Proven in the field of actuarial practice and managerial analysis zeb.control is being used by numerous insurance companies at home and abroad for the data management and evaluation of actuarial commitments (e.g. Solvency II). Business evaluations to identify creative leeway (e.g. time series analyses and sensitivity analyses) are supported in zeb.control through suitable planning and simulation functionality. zeb.control.accounting.ifrs.4 Product information - 6

7 Central requirement in the design of zeb.control was a high technical flexibility and scalability Basic technical features of the zeb.control architecture Integration capability Easy integration into existing system environments and business processes, such as SAP or other controlling and management systems, is achieved by using industry standards and platform independence Flexible connection of data sources by using established and proven standard interfaces Scalability Multi-tier architecture ensures the ideal utilization of resources on different systems Horizontal scalability through clustering Multi-client capability Security Internationality User friendliness Serviceability Comprehensive rights and role concept Encrypted data transmission Multi-currency capability Multilingualism Personalizable, comprehensive web front end Adaptation to the company's own corporate design Fully automated installation Can be integrated into existing administrative and operating processes Low update and distribution expenses due to web browser usage zeb.control.accounting.ifrs.4 Product information - 7

8 The technical platform of zeb.control uses a modern, sophisticated and portable technology System architecture of zeb.control and benefits Benefits in practice The system is scalable for any specific application. Sizing can be designed variably. zeb.control uses established system worlds in the database and server environment. The technology offers high performance and is scalable due to the selected IT environment and features (cluster technology). Architecture The ongoing operation of the software requires little capacity effort and, due to the standard technologies used, it can be covered with existing skills Consistent Java2EE architecture Distributable on up to three layers Integrable into existing (security) architectures zeb.control.accounting.ifrs.4 Product information - 8

9 Contract management Unbundling of distinct investment components and embedded derivatives Formation of insurance portfolios Classification of insurance contracts LFRC Valuation contract component (esp. IFRS 9 for investment components / derivatives) Accounting logic (measurement at/after recognition, derecognition) Posting records for general ledger Transfer of posting records into general ledger LFIC Portfolio valuation (aggregation) zeb.control.accounting IFRS 4 includes a clearly defined and documented process for producing an IFRS 4-compliant balance sheet and income statement Functional and technical process of zeb.control.accounting IFRS 4 Data and structure IFRS measurement Posting record generation a Standard: building block approach (BBA) 5 5a Individual contract valuation Future cash flows BBA extensions: variable fee approach for future discretionary benefits reins. contracts held 5b 5c 5d Discounting (bottom up, top down) Risk adjustment (VAR, TVAR, COC) Service margin (linear, progressive,...) 4b Simplification: premium allocation approach (PAA) 5e Value drivers Premiums Revenues Prov. for contingent losses Time value of money Overall i Supervision / approvals ii Simulation iii Reporting iv Planning functions v Historization vi Auditability vii Adjustment / breakdowns viii Opening balances ix Sub ledger x (Sub) balance sheet / P&L xi Cancelation xii DQM xiii Multi GAAP zeb.control.accounting.ifrs.4 Product information - 9

10 zeb.control facilitates the transfer of all relevant input data is an automatic and audit-proof manner checks and changes within the system are possible zeb.control: data quality management and correction List of incorrect input data, e.g. due to content-related inconsistencies or incompleteness Additional data, e.g. from Excel, can be imported Data correction, e.g. for individual contracts in life insurance zeb.control.accounting.ifrs.4 Product information - 10

11 An IFRS 4-compliant balance sheet with additional analytical functionalities, such as changes over time, is implemented in zeb.control zeb.control.accounting.ifrs.4 Product information - 11

12 Income related changes of technical provisions are represented in zeb.control in an IFRS 4-compliant income statement zeb.control.accounting.ifrs.4 Product information - 12

13 zeb.control offers a complete sub ledger for the technical provisions from insurance contracts with drill down functionalities Drill down to individual contract view and ad hoc reporting zeb.control.accounting.ifrs.4 Product information - 13

14 In addition to the pre-defined reports, the ad-hoc reporting provides a flexible and powerful reporting tool for all IFRS 4 key figures zeb.control.accounting.ifrs.4 Product information - 14

15 Completion of IFRS 4 phase II for insurance contracts concretized open discussion on accounting for participating contracts Timeline developments in IFRS 4 and classification for Solvency II and IFRS 9 Basis for current accounting proposals Publication DP Preliminary Views on Insurance Contracts Publication ED Insurance Contracts (ED/2010/8) Publication revised ED Insurance Contracts (ED/2013/7) Educational sessions and tentative decisions Earliest date for publication of final standard Earliest scheduled initial application May 2007 July 2010 June / January 2020* IFRS 4 standard model is considered final: According to IASB, discussions on the standard model have been completed and, with the exception of contracts with participation, are considered final.** 01/01/2016: adoption of Solvency II 01/01/2018: adoption of IFRS 9 (without obligation for insurers) from 01/01/2020: adoption of IFRS 4 expected *) zeb assessment (depending on the publication date of the final standard) **) IASB staff paper: Insurance contracts, [ the IASB has completed its discussions on the model for insurance contracts without participation features ], March 2015 zeb.control.accounting.ifrs.4 Product information - 15

16 1 Software zeb.control.accounting IFRS 4 2 zeb service offer for accounting zeb.control.accounting.ifrs.4 Product information - 16

17 For the implementation of the software zeb.control.accounting IFRS 4, zeb provides three service packages Implementation support service packages Service Content Software zeb offers separately licensable software modules for accounting (IFRS) and regulatory reporting (Solvency II). Accounting modules: zeb.control.accounting IFRS 4 zeb.control.accounting IFRS 9 Functional and technical implementation support by zeb Business and IT consulting Proven procedure models for software implementation, including relevant delivery and reading systems. Functional and technical implementation support for initial operation, parameterization, training and documentation of the software solution. Maintenance Ongoing professional and technical maintenance of the software as well as modification/extension of the solution for future new requirements of the IFRS standard. zeb.control.accounting.ifrs.4 Product information - 17

18 zeb is a reliable partner for insurance companies, offering an ideal experience mix in the fields of accounting, actuarial practice and software Six reasons to choose zeb Six reasons to choose zeb Outstanding functional expertise in finance, risk and regulatory topics in the insurance sector Functionally and technically completely predefined software for accounting of actuarial liabilities under IFRS 4.2 Comparatively inexpensive and rapidly implementable software with high levels of integration with existing systems A clearly defined process model for IFRS 4.2, which can be optimally adapted to the existing work processes of the customer Predefined use cases by zeb enable a fast and target-oriented approach in the project Years of experience in implementing complex requirements as proven with the implementation of Solvency II and IFRS 9 zeb.control.accounting.ifrs.4 Product information - 18

19 Your contacts Dr. Sven Jansen Director Phone Mobile Office Münster Foto Dr. Martin Jonas Manager Phone Mobile Office Frankfurt