Panjab Post/Bureau
In a strategic move to align with the latest regulatory requirements, GIC Re, a leading name in India’s reinsurance sector, has chosen SAP Fioneer’s cutting-edge technology to ensure compliance with the International Financial Reporting Standard 17 (IFRS17). This decision marks GIC Re’s proactive approach in adapting to evolving accounting standards, particularly the Indian Accounting Standard 117 (IndAS 117), slated for implementation by April 1, 2025.
IFRS17, mandated by the International Accounting Standards Board (IASB), introduces significant changes in insurance contract accounting, emphasizing transparency in financial reporting and risk assessment. IndAS 117, designed in conjunction with IFRS17, necessitates insurers to provide clear disclosures of future cash flow estimates, appropriate discount rates, and adjustments for non-financial risks. Unlike previous methods, revenue calculations under IndAS 117 will now reflect changes in contract liabilities rather than premiums received.
To meet these stringent requirements, GIC Re has opted for SAP Fioneer’s Financial Products Subledger (FPSL) for Insurance solution, renowned for its robust capabilities and already adopted by more than 90 insurance and reinsurance groups worldwide. This strategic partnership not only positions GIC Re at the forefront of compliance but also underscores its commitment to operational efficiency and stakeholder confidence.
S K Rath, General Manager at GIC Re, emphasized the institution’s commitment to transparency and regulatory adherence, stating, “Ensuring compliance with evolving regulations has always been GIC Re’s top priority.” Dirk Kruse, CEO of SAP Fioneer, expressed confidence in FPSL’s ability to support GIC Re’s transition, noting, “FPSL is tailored to meet GIC Re’s needs and help them meet the stringent April 1, 2025 deadline.”
With this implementation, GIC Re aims not only to comply with IndAS 117 but also to enhance operational effectiveness, reinforcing its leadership in India’s dynamic reinsurance market.