GIC Re chooses SAP Fioneer to meet IFRS17 requirements
Walldorf, July 16, 2024– GIC Re, India’s largest reinsurer has chosen SAP Fioneer’s technology to implement state-of-the-art solutions for compliance to the International Financial Reporting Standard 17 (IFRS17).
IFRS17, introduced by the International Accounting Standards Board (IASB), mandates significant changes in the accounting for insurance contracts. These changes necessitate advanced technological solutions to ensure accurate financial reporting and compliance. In India, IFRS17 will be implemented as the local accounting standard equivalent called Indian Accounting Standard 117 (Ind-AS 117). IndAS117 has been developed in coordination with IFRS17 and mandates insurers to explicitly declare unbiased estimates of future cash flows, discount rates reflecting the contracts’ cash flows, and adjustments for non-financial risk. Further, revenue will no longer be equal to written premiums but to the change in contract liability.
In order to adopt this new accounting framework by the official target date of April 1, 2025 (FY26), GIC Re has chosen to implement SAP Fioneer’s Financial Products Subledger (FPSL) for Insurance solution offering. FPSL already has a significant presence in the global insurance market, more than 90 insurance and reinsurance groups adopting the solution. The selection of SAP Fioneer’s FPSL solution by GIC Re is seen as a reinforcement of that vote of confidence by the Indian Insurance sector. After successful implementation, GIC Re will be the first Indian reinsurer to comply with the new IndAS 117 regulation.
“GIC Re’s unwavering commitment to transparency, accountability, and compliance with regulatory changes has consistently been our top priority,” stated S K Rath, General Manager at GIC Re. “We are confident that SAP Fioneer’s software solution and domain expertise will empower GIC Re to navigate the evolving regulatory landscape effectively, enhancing operational efficiency.”
“GIC Re needed a robust and scalable solution that would enable them to meet the regulators target of April 1, 2025. The Financial Product Subledger (FPSL) is exactly that and we are proud to work with GIC Re to reinforce their position as a leader in the Indian reinsurance market while delivering value to their stakeholders,” adds Dirk Kruse, CEO of SAP Fioneer.
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About GIC Re (www.gicre.in/en/)
GIC Re is the only Indian reinsurance company in the Indian market and headquartered in Mumbai, India. It provides reinsurance support to both Indian and international insurance and reinsurance companies and writes business from over 140 countries globally.
About SAP Fioneer (www.sapfioneer.com)
SAP Fioneer was launched in 2021 as a joint venture between global technology leader SAP and entrepreneurial investor Dediq to become the world’s leading provider of financial services software solutions and platforms.
With a broad ecosystem of partners, over 800 financial services customers and more than 1,000 employees, SAP Fioneer is a global business present in 17 countries across Europe, North and Latin America, Middle East and Asia-Pacific.
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