Dubai, United Arab Emirates, June 25, 2019, (AETOSWire) : Beyontec Solutions, a global insurance technology solutions provider, and AJMS, a leading accounting, tax and governance, risk & compliance (GRC) consulting firm, have entered into a strategic partnership to develop a comprehensive IFRS 17 solution for the Middle East and African insurance industries.
Introduced as the harmonized global accounting standard for insurance contracts including reinsurance, International Financial Reporting Standard (IFRS) 17 aims to provide consistency across all aspects of accounting in insurance. Issued by the International Accounting Standards Board (IASB), the new standard will come into effect from 1st January 2021, with an option to adopt early.
Speaking on the occasion, Mr. Vivek Sethia, director and co-founder of Beyontec DMCC said, “At present, insurers follow many divergent accounting practices that make it difficult for the comparison of financial statements. With IFRS 17, it will result in improved comparability of financial statements and will increase the overall quality of the financial disclosures by insurers.”
The new reporting standard under IFRS 17 will undoubtedly be a significant change for accounting requirements. However, it poses tremendous challenges for insurance companies in grasping the operational impacts on data, systems and processes. “We are delighted to partner with AJMS on developing the IFRS 17 specific software product as we see great synergies in our understanding of the insurance industry, and the combined ability to proactively consult and transition insurers into the new standards,” added Vivek.
AJMS with its extensive experience in effectively assisting companies to monitor and manage risk & compliance with regulatory requirements, will drive the product blueprinting for the new IFRS 17 solution being developed by Beyontec. “AJMS looks forward to working with Beyontec on the new IFRS 17 solution. Our insurance experience, IFRS consulting and implementation knowledge complement their deep domain knowledge and skill sets that are needed to develop a comprehensive solution on time,” concluded Mr. Abhishek Jajoo, Partner & CEO of AJMS.
Once developed, this new product can be implemented across General and Life Insurance companies and will have IFRS 17 capabilities across finance and actuarial systems. It will connect data, systems and process environment between finance and actuarial with the ability to meet future accounting challenges.
IFRS 17 compliance is a transformational shift for the entire insurance industry. Insurers must carefully evaluate the considerations and options for IFRS 17 compliance and map the transition benefits to their finance strategy and business objectives. The combined capabilities of Beyontec and AJMS Consulting fit into this sweet spot perfectly as a one-stop shop for everything related to IFRS 17 compliance and its implementation.