#Philippines #Manila #Malayan Insurance #SAS IFRS 17 #Philippines Insurance

Malayan Insurance Achieves IFRS 17 Readiness Ahead of Schedule

Malayan Insurance, one of the biggest non-life insurance companies in the Philippines, has reached a significant milestone by being among the first to achieve IFRS 17 readiness, fulfilling this requirement two years ahead of the regulatory deadline. This accomplishment was made possible through the implementation of the SAS® Solution for IFRS 17, alongside SAS® Managed Cloud Services. This forward-thinking initiative positions Malayan Insurance as a leader in regulatory transformation within the ASEAN insurance landscape.

The Importance of IFRS 17 Readiness

IFRS 17 represents a comprehensive new international standard for insurance accounting, intending to enhance the transparency and comparability of financial statements across companies and borders. It necessitates that insurance companies reevaluate how they assess liabilities and recognize revenue from their contracts. By moving away from the prior IFRS 4 regulations, Malayan Insurance focused on cultivating a more reliable financial reporting framework that aligns with global practices.

The company’s endeavor to meet these rigorous standards involved redefining its legacy systems and enhancing its data models. One of the initial steps included building a robust technology platform explicitly designed to meet the various complex requirements laid out by IFRS 17. This transition allowed the insurer to automate cash flow calculations, model Contractual Service Margin (CSM), and generate audit-ready reports efficiently.

Collaborative Effort Across Departments

The successful implementation of IFRS 17 was no small task; it required a deep collaborative effort across several departments, including finance, actuarial, underwriting, and IT. According to Frederick Pineda, the Senior Vice President and Chief Financial Officer at Malayan Insurance, this cross-functional approach was integral to delivering precise results. Each team played a distinct role — from handling assumptions and cash flow modeling to extracting usable data from outdated systems, everyone contributed to navigating the complexities of historical data retrieval.

“Retrieving and preparing historical data dating back to 2018 was one of the most challenging components,” Pineda noted. “Collaboration was essential to identify and manage the necessary data inputs and assumptions for effective functionality.” This degree of cooperation ensured that all involved had a comprehensive understanding of the inputs required for successful implementation.

Committing to Excellence Despite Delayed Deadlines

While the deadline for local compliance was extended, Malayan Insurance opted to maintain its original timeline for readiness. For them, this was not merely a matter of compliance; it was about fostering a culture of doing things right while aligning with international best practices.

“With a strong focus on 'doing it right', we can ensure that we remain a reputable player in the industry, reinforcing our leadership position,” Pineda stated. This strategic foresight has fortified the company’s credibility with regulators, further establishing its role as a leader in the sector.

Choosing the Right Partner for Implementation

In their quest for an effective IFRS 17 solution, Malayan Insurance rigorously evaluated multiple platforms and ultimately chose the SAS Solution due to its flexibility, auditability, and responsive post-implementation support. The decision fell upon SAS mainly because of the need for detailed traceability — from raw data to finalized figures.

Pineda expressed the reasons behind choosing SAS: “The robust functionality and transparent implementation process gave us the confidence we needed throughout the transition,” he shared, highlighting how crucial support from SAS was during the user acceptance testing phase.

The partnership with Financial Risk Group (FRG) also proved instrumental in ensuring a successful rollout, assisting with model calibration, setup, and iterative testing processes.

Enhanced Financial Reporting Capabilities

With the SAS solution fully operational, Malayan Insurance was able to dramatically reduce their reporting cycles, reaching IFRS 17 figures in under 30 minutes with complete traceability of their outputs. This project, which originated as an accounting-focused initiative, yielded additional insights that have proven valuable in making informed business decisions.

A Strategic Transformation Ahead

Achieving IFRS 17 readiness is far more than merely meeting regulatory requirements for Malayan Insurance. It's a transformational feat that will support the company in evolving its digital capabilities while reinforcing its commitment to innovation, agility, and sustained market leadership. In an ever-changing insurance landscape, their collaboration with SAS is set to drive future advancements in their operations.

About SAS

SAS is a recognized global leader in data analytics and AI, providing organizations with tools that convert data into actionable insights. With their extensive portfolio, SAS empowers companies to make informed decisions, reinforcing their reputation as an authority in the industry.

Moving forward, Malayan Insurance looks to leverage these new capabilities to stay ahead in the competitive market, fostering continuous growth and enhanced operational efficiency.