Making complex issues manageable
The insurance industry faces a multitude of challenges including increased regulation, rapid technological innovation, a hyper-competitive landscape, and widespread consolidation. Staying ahead of the competition means finding new ways to manage margins and preserve capital which can include any or all of: investment strategies, diversification, reinsurance, technological innovation, increased cybersecurity vigilance, mergers, acquisitions, and joint ventures. At BDO, we're dedicated to understanding the complexities our clients face each day, and our insurance group puts their extensive industry knowledge to work by offering proactive solutions.
Regulatory compliance: Insurers are under more pressure than ever to address regulatory and compliance requirements in critical areas such as financial reporting, disclosure, privacy, and security. We offer pragmatic solutions to help our clients address the complexities of regulation—including GDPR, ORSA, IFRS 9, and IFRS 17—by applying our thorough understanding of risk, regulatory, accounting, data, and technology requirements.
Evolving accounting, tax, and auditing standards: Insurance companies are required to adopt complex standards that impact financial statements such as IFRS 9, 15, 16, and 17. These standards can affect financial presentation, communications to investors and the investor community, and active management of capital ratios and minimum capital testing process. Our specialized accounting, assurance, and tax professionals are committed to ensuring that our clients are aware of emerging standards and can prepare to respond.
Illustrative Statements For The Mutual Insurance Community
Digital transformation: Consumer digital needs are changing, data volumes are accelerating, innovation is everywhere, and IT agility is essential. These factors are the new norm for gaining and sustaining competitive advantage. Our team of professionals helps our clients accelerate their growth by fully capitalizing on their digital investments.
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Enterprise risk management and cybersecurity: Insurance companies are increasingly threatened by cyberattacks, have highly complex IT environments, and face significant regulations within their markets. We focus on solutions that enable our clients to be agile in order to respond to regulation changes in the cyber landscape.
Financial advisory: The Insurance market is extremely active with broker amalgamations and insurer mergers and acquisitions. Our strong team of professionals assist our clients in the strategic, evaluation, transactional, and operational stages of the integration journey.
Forensic support: The insurance industry faces increased complexity in managing the risks associated with loss events. We offer a full range of forensic support for insurance loss services including accidents benefits, financial dependency, tort claims, and commercial losses.
BDO assists our insurance clients in understanding and complying with evolving accounting and regulatory reporting requirements as well as innovating with technology by offering an approach tailored to specific business needs. This is how we contribute to helping you gain a competitive edge in a challenging marketplace.
The IFRS 17 and LDTI journey
For insurers, the adoption of new standards such as the IFRS 17 and LDTI, represents a significant change to their business. For those needing to achieve timely IFRS 17 compliance and are looking for an accelerated cross-functional implementation to get there, the journey is now a straight line from beginning to end. On the other hand, for those aspiring to achieve LDTI compliance, there is still time to incorporate business transformation to get the most return from the adoption of the new standard.
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Considering the broad impact of this change, insurers need to establish a plan and start their journey immediately. Whether your objective is to modestly achieve compliance, leverage the opportunity to optimize processes, or completely transform your business, BDO's team of insurance industry professionals can help you navigate the complexities of IFRS 17 and LDTI.
By utilizing decades of experience in Canadian, U.S., and international accounting and financial reporting practices combined with in-depth knowledge of business and technology accelerators around IFRS 17 and LDTI, we offer a portfolio of services and resources to support the adoption of the new standards.