BrazilAJMS partners with Beyontec on Middle East insurance solution
Boutique consultancy AJMS has teamed up with global insurance technology firm Beyontec Solutions to develop a comprehensive IFRS 17 solution for the Middle East and African insurance industries.
AJMS, a governance, risk and compliance consultancy based in Dubai and headed by chairman and managing partner Raju Menon – the founder of the Kreston Menon Group (with the firm switching its alliance from Morison to Kreston earlier this year) – has entered into a strategic partnership with global insurance technology firm Beyontec Solutions to develop a IFRS 17 solution for the Middle East and Africa.
The International Financial Reporting Standard (IFRS) 17, set to come into effect as a replacement for IFRS 4 from the start of 2021, is issued by the International Accounting Standards Board (IASB) and aims to provide consistency across all aspects of accounting in insurance through a model which calculates contract liabilities “as the present value of future insurance cash flows with a provision for risk.”
While set to enhance the quality of financial disclosures, the new regulations according to the fresh strategic partners pose tremendous challenges for insures in grasping the operational impacts. “IFRS 17 compliance is a transformational shift for the entire insurance industry,” state the firms. “Insurers must carefully evaluate the considerations and options for IFRS 17 compliance and map the transition benefits to their finance strategy and business objectives.
According to Beyontec and AJMS, once developed, their new industry solution will be able to be implemented across General and Life Insurance companies and will have IFRS 17 capabilities for finance and actuarial systems, connecting data, systems and the process environment between finance and actuarial with the ability to meet future accounting challenges. AJMS will drive the product blueprinting with Beyontec developing the solution.
“We are delighted to partner with AJMS on developing the IFRS 17 specific software product as we see great synergies in our understanding of the insurance industry, and the combined ability to proactively consult and transition insurers into the new standards,” said Vivek Sethia, the co-founder and director of the US-based Beyontec, which was established in 2008 and has upwards of 200 employees.
AJMS Partner & CEO Abhishek Jajoo, who has an extensive risk management track record dating back to a 2010 stint with Protiviti, responded in kind; “AJMS looks forward to working with Beyontec on the new IFRS 17 solution. Our insurance experience, IFRS consulting and implementation knowledge complement their deep domain knowledge and skill sets that are needed to develop a comprehensive solution on time.”
In a recent interview with Tech Wire Asia, Senior McKinsey Partner Bernhard Kotanko urged insurance companies to buddy up with insure-tech firms to accelerate their digitisation, noting that the majority of such firms shouldn’t be seen as a threat. “Among insurtech, we observe a massive shift in focus from trying to disrupt insurance as a whole to actually developing specific value-add solutions that can be plugged into insurance value chains,” Kotanko explained.
