The document discusses the role of information technology in implementing IFRS 17. It notes that IFRS 17 is a complex, principle-based standard that requires extensive calculations and high-quality data for disclosure and global comparability. It states that properly implementing IFRS 17 will require sophisticated data extraction, transformation and loading, master data management, use of microservices and actuarial software, appropriate databases, and reporting in XBRL format. Technology is crucial to effectively meeting the requirements of the new standard.

1. ROLE OF INFORMATION
TECHNOLOGY IN IFRS 17
Jabran Noor
Director, PKF Riyadh
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

2. Computer science is no
more about computers
than astronomy is
about telescopes

3. OVERVIEW.IFRS 17 IS A COMPLEX STANDARD
03Principlebased.
01 DisclosureOriented.
02 Calculationintensive.
HighDefinition.
04 Globalcomparability.
05 TechnologyDependent.
06
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

4. OVERVIEW.IFRS 17 IS A COMPLEX STANDARD
03Principlebased.
01 DisclosureOriented.
02 Calculationintensive.
HighDefinition.
04 Globalcomparability.
05 TechnologyDependent.
06
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

5. OVERVIEW.IFRS 17 IS A COMPLEX STANDARD
03Principlebased.
01 DisclosureOriented.
02 Calculationintensive.
HighDefinition.
04 Globalcomparability.
05 TechnologyDependent.
06
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

6. OVERVIEW.IFRS 17 IS A COMPLEX STANDARD
03Principlebased.
01 DisclosureOriented.
02 Calculationintensive.
HighDefinition.
04 Globalcomparability.
05 TechnologyDependent.
06
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

7. OVERVIEW.IFRS 17 IS A COMPLEX STANDARD
03Principlebased.
01 DisclosureOriented.
02 Calculationintensive.
HighDefinition.
04 Globalcomparability.
05 TechnologyDependent.
06
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

8. OVERVIEW.IFRS 17 IS A COMPLEX STANDARD
03Principlebased.
01 DisclosureOriented.
02 Calculationintensive.
HighDefinition.
04 Globalcomparability.
05 TechnologyDependent.
06
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

9. You can’t improve what you don’t measure

10. Non-Linear Pathway.
[
]
%
$
0
Q
Begin!
Partnership
Brainstorm
Investment
Revise
Discussion
Launch!
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

11. Ingredients.
Data Calculations Reporting
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

12. 1. ETL.
Extract Transform Load
AUTOMATED
FAULT
TOLERANT
HIGH
PERFROMANCE
• Re-measure CSM at
subsequent
reporting periods
• Profit and Loss
attribution analysis
• Generate reports
and downstream
extracts

13. 2. Data Quality/ Profiling.
Data Quality is the measure of the
accuracy, validity and completeness of
data
Data Profiling is the process of
statistically examining and analyzing
the content in a data source
• For calculation and
reporting purposes,
the quality of data
should be top notch
• Data and results
should be
continually profiled
and monitored
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

14. 3. MDM.
Master Data Management
Closely linked with one version of
the truth
• In IFRS 17, it is
critical that a single
version of the
reality exists from
which all
calculations are
derived.

15. 4. MICRO SERVICES.
Designing software applications as
suites of independently deployable
services
COMPONENTIZATION VIA SERVICES PRODUCTS NOT PROJECTS
DESIGN FOR
FAILURE
• In IFRS 17, there
are many moving
parts – all parts
should be in sync
with each other and
easily replaceable
without damage to
overall architecture
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

16. 5. ACTUARIAL SOFTWARES.
Excel spreadsheets should only
be used for prototyping – not for
production. They are costly !!
PREPACKAGED ACTUARIAL
SOFTWARE WITH ROBUST CASH
FLOW PROJECTIONS CAPABILITY
SAS / R / QLIKVIEW
• Under IFRS 17,
actuarial work
should be
productionalized.
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

17. 6. Databases.
• Traditional
databases do not
scale.
• Strength of
databases should be
leveraged.
• No need to reinvent
the wheel
NO SQL
GRAPH
DATABASES
COLUMNAR
DATABASES
JSON / XML
FORMATS
IN MEMORY
DATABASES
STREAMING
DATABASES
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

18. 7. XBRL.
• Illustrative
Taxonomy for IFRS
2017 has been
published
• Use XBRL to
standardise
reporting
• Adopt best
practices in
software and
reporting
GLOBAL STANDARD FOR
EXCHANGING BUSINESS
INFORMATION
Presented by Jabran Noor on 28th February 2018 at Pakistan Society of Actuaries Seminar

19. the path curves ahead

20. trust technology

21. Jabran Noor
jabran.noor@pkf.com