Business Challenge

For the insurance company, the implementation of the IFRS 17 accounting standard introduced new data requirements and reporting obligations. The existing systems were unable to ensure the data consistency, auditability, and aggregation logic required for IFRS 17-compliant closing processes. The harmonized management of data from multiple source systems, along with the need to support both actuarial and accounting calculations, required a complex system integration approach. 

Solution

As part of the project, a completely new, modular data consolidation system (AKR) was developed, serving as the technological backbone of the IFRS 17-compliant financial closing and reporting processes. The system is designed to integrate and harmonize data from multiple source systems – including actuarial modeling tools, accounting systems, and insurance technical databases – into a unified structure, enabling automated data processing, aggregation, and transfer to downstream calculation and reporting systems. 

The architecture of the AKR system is structured into three main layers: a database layer built on Microsoft SQL Server, an application logic layer, and a web-based thin client interface that enables users to monitor processes, perform manual interventions, and conduct audits. During data processing, SSIS-based ETL workflows and stored procedures implemented in MS SQL played a key role in ensuring data transformation consistency and high performance across the system. 

The system is capable of receiving data from various source types and processing them according to predefined business rules. During processing, data are aggregated at the Group of Insurance Contracts (GIC) level, while the system ensures traceability, version control, and full auditability. One of the key modules is the process control interface, which guides users through the closing workflow in a checklist-like manner, ensuring that each step can only be executed once its prerequisite conditions have been met. 

The system integrates through dedicated interfaces with the Prophet actuarial software, the SecondFloor IFRS 17 engine, as well as the accounting and reporting systems. The structured management of input and output data enables the automated posting of calculation results and the generation of regulatory reports. During system design, special attention was given to scalability, future extensibility, and technology independence, ensuring long-term adaptability to evolving business and regulatory requirements. 

Results

As a result of the project, the insurance company implemented an integrated system that fully supports IFRS 17-compliant closing and reporting processes. Through the AKR solution, our client is now able to manage data from multiple source systems in a unified manner, automate actuarial and accounting calculations, and meet complex regulatory reporting requirements. The system is auditable, scalable, and prepared for future extensions, ensuring long-term sustainability. The project successfully supported the IFRS 17 adoption and contributed to greater financial transparency and operational efficiency across the organization.