Actuarial and finance modernization
Insurers face unprecedented changes in financial reporting. How will you rethink your business models and operations and the technology that underpins them?
Solving for USGAAP Long Duration Targeted Improvements with Workday
Operational impacts and implementation strategy of LDTI
The impacts to insurers from LDTI are wide-ranging from strategy to operational and financial reporting. To solve these challenges and address the new requirements, insurers are considering modern, cloud-based offerings with advanced data storage, accounting rules engines, detailed financial subledgers, and analytical and reporting capabilities.
LDTI changes require some level of rethinking and retooling of an organization’s current actuarial and financial reporting processes. Those willing to make strategic investments in modern technology as a part of their LDTI program could see that decision pay dividends for their organization for years to come.
Modernization trends and LDTI
Many insurers taking a modernization approach to LDTI are focusing their efforts on actuarial calculation engines and cloud-based data repositories that provide more comprehensive and flexible storage capabilities for LDTI results. The move to cloud-based applications within finance has been a trend with insurers for many years already, particularly with Enterprise Resource Planning (ERP) and Enterprise Performance Management (EPM) solutions. There has been increased usage of accounting rules engines supporting multi-basis accounting for which accounting logic is owned and maintained centrally by finance. These technologies help support the increased data volumes, calculation and posting needs of LDTI with the increased flexibility and significantly decreasing the need to re-run results and post varying levels of detail to multiple downstream systems.
Finance capabilities to support life insurers
PwC recommends LDTI solutions possess the following key capabilities as without all of these, achieving full compliance with LDTI will pose operational challenges and reporting risks to the organization.
PwC and Workday: A new value equation for what’s ahead
With Workday many of the core reference architecture components can reside in the same, cloud-based Intelligent Data Foundation, enabling a single source of truth, reducing reconciliation needs and improving time to value in reporting, analysis, and communication to internal and external stakeholders.
PwC can help simplify LDTI and rapidly accelerate LDTI implementation without the high costs of developing, running and maintaining a bespoke solution.
We have dedicated teams of insurance finance specialists and Workday-certified professionals to assist insurance leaders with adapting their business strategy and operating models for LDTI, while controlling risks and achieving returns for their stakeholders.
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