Ria Grant Thornton experts can help insurance companies in all project areas covered by the Grant Thornton network for the sector: Risk, Strategy and Transactions, Transformation.
The insurance sector is in a phase of profound transformation brought about by both the regulatory changes in IFRS 17 and 9, and in the context of major market changes, also in light of the growth in inflation and the rise in interest rates.
The organisational and accounting effects of the implementation of IFRS 17 and 9 are calling for huge commitment by the functions involved in the use of financial statements indicators and the monitoring of new accounting reports. The new standard, presenting new types of data and disclosures, is difficult to compare with the previous IFRS 4 and IAS 39 data. This creates difficulties in interpreting the data and deviations. Even in the context of sharing objectives and results with the use of new KPIs, such as the CSM or old KPIs modified by the components of the new accounting standard, such as the Combined Ratio, difficulties are coming to light in the analysis of the results, as well as in the sharing of objectives and performances.
The return of inflation has brought to light new problems in the management of some businesses in the non-life sector and, in particular, in the cost of claims of some particularly sensitive lines of business. The life sector has been impacted by certain aspects related to the consequent change in short and medium-long term interest rates. Another aspect to be monitored concerns the redemptions of first-class life insurance products and the related liquidity risk, and consequently the decisions to be taken in the field of strategic and tactical asset allocation, also for the purpose of seizing the opportunities presented by the rise in the curves of interest rates.
The Grant Thornton FDD team has developed specific skills in strategic areas for Italian insurance:
- IFRS 17 and 9 with a special focus on financial analysis, KPIs, monitoring of the volatility of balance sheet data, measures to mitigate volatility and seize business opportunities created by the introduction of the new international accounting standard
- Solvency II, and the implications for the Risk Management, Compliance, Actuarial and Audit functions, also in light of the regulatory changes relating to the new QRTs
- The unique organisational characteristics of products and processes of the Bancassurance sub-segment both in the organisational context and in that relating to the monitoring of profitability and capital management also in contexts affected by the application of the Danish Compromise
- Activities to support corporate or group transformation processes to facilitate the integration and redesign of processes with a focus on the opportunities provided by new technologies but in complete autonomy from IT vendors
- Due diligence activities and/or assessments aimed at preparing useful information for top management, CFO area functions and internal control systems.
- Support for the implementation of new Italian and European regulations such as ESG insurance financial communication and the preparation of new compatible life products
- Support in the monitoring and management of new problems that have emerged in the life and non-life insurance business following the growth in inflation and interest rates in recent months.