PwC Malta carried out a survey of the Maltese Insurance market during September 2024. We asked respondents 26 questions and are pleased to share some of the insights gathered.
Our IFRS 17 post implementation survey of the Maltese Insurance market has highlighted various challenges faced by adopters, and shown that insurers are still working on their strategy surrounding recruitment and training of the Finance and Actuarial functions, as well as transforming through automation of processes and controls. Survey respondents highlighted that IFRS 17 implementation projects have had certain positive impact on insurers, with 46% of participants highlighting an improved unison between the finance and actuarial departments.
The majority of participants are unsatisfied or neutral about their control environment, when compared to the previous control environment, showing there is still room for improvement.
Insurers appear to be keen to transform and improve their working practices, however there are still hurdles identified by participants that need to be overcome, namely resource constraints, manual processes / lack of automation and interpretation and understanding of IFRS 17 requirements.
Approximately a third of participants determined that further training would be required on various topics, including bridging / reclassifications from IFRS 4 to IFRS 17, and from IFRS 17 to SII; drafting of financial statements; and expense eligibility and allocation.
35% of participants indicated that they have either sufficient data to prepare comprehensive management information reports allowing for insights of the required level. 77% of the participants indicated that they want to further strengthen their finance teams’ skills surrounding financial reporting controls while enhancing automation of existing processes.
Half of the participants also expressed that they want to develop skills further surrounding the automation of annual financial reporting processes and monthly financial processes. In our view, process and control review coupled with finance and actuarial automation/modernisation can bring value to insurers through the streamlining of processes and improved efficiencies.
77% would like to further strengthen financial reporting controls whilst enhancing automation of existing processes
About the key results
The survey results could provide insurers and other stakeholders with insights into the impact of IFRS 17 on insurers’ operations and their finance and actuarial functions, as well as providing viewpoints on finance and actuarial transformation.
The analysis and commentary included in this survey are based on responses provided by survey participants.
This document should not be used as a substitute for consultation with professional advisers. Information received from respondents has not been verified by PwC.
The detailed analysis for each of the 26 questions asked, as well as other key observations, is available by reaching out to your PwC contact.
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