FinanceJuly 29, 2021

Evolve Now: AmGeneral Insurance IFRS 17 experience

Malaysian Financial Reporting Standards 17 (MFRS17) would be effective from Jan 2023. As such, AmGeneral Insurance is required to comply with the standard. Considering the system changes, process changes and implementation timeframe – AmGeneral Insurance aims to complete the project in 24 months. Learn how AMGeneral Insurance - one of Malaysia’s largest motor and leading general insurance company - have embarked on the IFRS17 journey and
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WEBVTTMy name is Kenny Tan and I am the Chief Financial Officer of AmGeneral Insurancebased here in Kuala Lumpur, Malaysia. Let me share with you who we are here at AmGeneral Insurance. We do operate under two retail brands, AmAssurance andKurnia. We are the second largest motor insurer in Malaysia insuring one out of every seven cars. We have two million customers that we serve everyday and I'm alsovery proud to share that we have recently won quite a few awards. Three in particular: Best P&C and Motor Claims Insurer last year, and Domestic General Insurer of the Year this year.We do have strong financials. We're a very well capitalized company and we do have stable earnings in recent years and for many years to come. So IFRS 17has been a very long journey for us. We have seen many solutions presented to us and CCH Tagetik was one of them.

We knew all along thatall of the solutions would be able to be compliant to the standard but we ultimately chose CCH Tagetik so I mention three key points that made us come tothat decision. First, it's a reporting-based solution so it's not finance, not actuarial but reporting-based that is able to give us the ability to come up withcustomized reports to meet different stakeholder needs. Second, it's an out-of-the-box solution which means it will be easy to use, easy to configure for the users to do,and third is what I call the helicopter view. There's a dashboard ability for us to actually look at the workflow, the processes, and identify where the issues are for us to actuallyrectify it. So these three key points is what made us choose CCH Tagetik ultimately.

IFRS 17 requires time, people,processes and resources. We are talking about a lot of new things here. We are talking about cash flows, different cohorts, expense allocation,income splits among many others. It requires a drastic change for sure. So can you involve data, can you involve allocation methodology and you also needrobust calculations. And this is where CCH Tagetik comes in. It helps us do the dirty work, connecting the dots, doing the calculations and posting where it should befor us to address the complexity of the entire standard. The transition to the new standard has been a long one. We are three years into this release of the new standardand we are still trying to understand the implications of it. There is a lot to learn, there's coaching our internal external stakeholders. And the key thing here is constant engagement with our partners.We're talking about accounting consultants, we're talking about auditors, we're talking about a solution provider, in this case CCH Tagetik.

Overall we believe this standard will streamline the reporting,promote transparency, which will be good for the business and also the industry. The standard has been moved one additional year: now it's effective 2023.It may seem like a long time away but this additional time is good to have. But to relax? Probably not. It's a very complex standard that requires our understandingand working well with our partners. So what I would recommend is take this opportunity, this additional time, to actually just sit down, look into it carefully and do it right.In my opinion the best tool to ensure compliance with the new standard is CCH Tagetik. We use Excel a lotbut it cannot replace this tool because we need quick turnaround times. We also need compliance with the standard and it can complement the tool for sure, but for a company as large as ours,it requires a much tougher solution, and the investment we put into this solution gives us not just efficiency gain but also more clarity in terms of reporting and understanding the standard.So we feel this investment is going to work.

In one line I would say my experience with CCH Tagetik was the ability to connect with verypassionate people, the way that they presented themselves and also the solution and having the comfort that they will be with us throughout this whole journey together.

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