Solutions

  • IFRS 17
    Solution

  • Regulatory Reporting
    Solution

  • IFRS 9
    Solution

  • IFRS 16
    Solution


IFRS 17 independently evaluates the profitability of the insurance contracts and mandates insurance contracts having similar risks and managed together, to be grouped together.

TruAct Solutions addresses the new and expanding compliance requirements, which provides an easy-to-use solution under the IFRS 17 reporting hub, with the following:

  • Data repository
  • Calculation modelling
  • Reporting and disclosures
  • INTERACTIVE & CUSTOMISABLE DASHBOARDS

    TruAct Solutions provides its customers with an interactive and customisable analytical dashboard, where reports can be easily accessed and generated for different departments. These analytical reports help both companies and users alike, identify changes in the patterns, which help in better forecasting/planning. It will help companies and users to focus on their core responsibilities and strategic considerations.

  • PARALLEL REPORTING

    TruAct Solution’s capability in providing comparative reports will ensure compliance with the local regulations as well as demonstrate the impact of adopting IFRS 17.




    • More Feature

  • IFRS 4 vs IFRS 17 COMPARABLE REPORTS

    TruAct Solutions provides a unique feature that presents a comparative view of IFRS 4 and IFRS 17 starting from comparable journal entries and trial balance to comparable reports that provides you with a competitive edge in the market.

  • ‘CLOUD BASED’ OR ‘ON PREMISE’

    TruAct Solutions is flexible to host on Cloud servers and accessed through a web browser or it can be installed locally, on the company’s own server.

  • MULTI-CURRENCY FEATURE

    TruAct Solutions has a unique feature for companies dealing in multi- currency, helping them achieve solo and group reporting.

  • AUDIT TRAIL ACROSS THE SYSTEM

    TruAct Solutions provides a security-relevant chronological record, set of records, involving both destination and source of records that provide documentary evidence of the sequence of activities that have affected at any time a specific operation, procedure, or event.

    TruAct Solutions helps provide comprehensive audit trails and visibility into information, creating a system to accurately review historical security and operational activity, improve the way information is stored, and to ensure secure authorised access to information.

  • MINIMAL CHANGES REQUIRED TO THE EXISTING SYSTEM

    TruAct Solutions is vendor agnostic and can be integrated with any existing software solutions, including new data points required under IFRS 17.

  • 4 EYE PRINCIPLE

    Our innovative Four-Eye-Principle authentication mechanism provides maximum protection for the company’s information.

  • IN BUILT COMPLIANCE VALIDATION

    TruAct Solutions feature ensures seamless integration with the existing core system. It comes with an in-built compliance validation feature, where the data that is input to the solution goes through a series of authentication checks to ensure appropriate reporting and disclosure.

  • USER PRIVILEGE BASED ACCESS

    In conjunction with the 4-Eye principle approach our solution enables user access logs to be maintained, which will clearly distinguish the permissions assigned and reports accessible to different roles within the company.

  • CONSOLIDATION AND SOLO LEVEL REPORTING

    TruAct Solutions has a unique feature for companies dealing in multi- currency, helping them with both solo and group reporting.

  • RECONCILIATION FEATURE (TRIAL BALANCE AND DISCLOSURES)

    TruAct Solutions has a unique feature for companies dealing in multi- currency, helping them with solo and group reporting.

    TruAct Solutions provides the process of ensuring the two sets of records are in agreement. It ensures the comparability of IFRS 4 data with IFRS 17.

  • REPORTING MODULE

    TruAct Solutions incorporates all new reporting requirements under IFRS17 based on the groupings formed as part of the actuarial process.

  • Complete end-to-end IFRS 17 solution
  • Parallel reporting with IFRS 4 & IFRS 17
  • Customisable and modular solution
  • Vendor and platform agnostic deployment

The regulatory reporting solution by TruAct was built during the design and implementation phases of IFRS 9 and 17 standards. With huge changes in IFRS standards and a tectonic shift in the reporting process, automation of regulatory reporting is now become inevitable.

TruAct’s regulatory reporting solution makes available the templates based on the client’s geographical regulations and ensures that all regulatory requirements are complied with.

  • Financial statements
  • IFRS 7 disclosures
  • Fully automated regulatory reporting templates

    The solution will be integrated with the existing core system and data sources for data extraction. The data then passes through a series of validation checks and is processed within the solution, post which the reports are extracted.

  • Customisable reports

    The solution allows users to customise the reports that enhances the variance analysis and review process for the management.

  • Streamline existing time-consuming activities
  • Reduced human intervention

The IFRS 9 solution provided by TruAct automates the Impairment Model for the clients thereby simplifying the entire process of ECL calculations. This is carried out with the help of the below models integrated within the solution.

  • Macro- Economic
    variable Model
    (MEV Model)

  • Macro- Economic
    variable scenario Model
    (MES Model)

  • Probability
    Default Model

  • Master
    Impairment Model

The purpose of the model is to identify statistically significant macro-economic variables (MEVs) for default rate predictions. This model identifies the Macro-Economic Variables that show high relativity between the MEV (driver) and the historic default rates of the company’s portfolio. The identified MEV’s are further used to estimate the reaction of the MEV’s based on scenarios (2nd Model) that may affect the company’s portfolio.

Input Output
  • Historic default rates
  • Historic MEVs
  • Statistically identified significant MEVs
  • Slopes and Coefficients identified MEVs

The purpose of the model is to predict macro- economic scenarios, assign probabilistic weights to each scenario and to predict the default rates under each scenario. This model is used to run factor analysis on the selected MEV’s to find the Principal Component (PC), then regression is run based on 3 scenarios (Base, Down and Up).

Input Output
  • Historic default rates
  • Historic data of MEVs
  • Projected data of MEVs
  • Base, Down and up case economic scenarios
  • Probabilistic weights for each scenario

The purpose of this model is to estimate PIT PD for each portfolio segment. The PD Model is designed to calculate the implied point in Time Probability of Default that is used to calculate the Expected Credit Loss (ECL).

Input Output
  • DPD data
  • Base, down and up case economic scenario
  • Probabilistic weights for each scenario
  • DPD based PIT PD Distribution

The purpose of this model is to estimate the Loss Given Default (LGD), Exposure at Default (EAD) and Expected Credit Loss (ECL).

Input Output
  • PIT PD distribution
  • Segment- wise exposures as per IFRS 9 buckets
  • Segment- wise current provisions
  • Segment- wise weighted average interest rates
  • YOY outstanding exposure and cash flows
  • Current off-balance sheet exposure
  • Segment-wise exposures and collateral values
  • Collateral value haircuts for bucket III
  • Segment-wise exposure weighted LTV ratios
  • Segment-wise historic recovery rates and its SDs
  • Segmented ECL estimation
  • Consolidated ECL estimation
  • Comparison of ECL estimation with IAS 39 provisions
  • Benefits of IFRS 9 Solution ??


TruAct’s IFRS 17 actuarial solution transforms the IFRS 4 data into cash flows as required under IFRS 17 and generates the risk adjustment, and contractual service margin (reports?).

There are three approaches unsder IFRS 17 and TruAct is built taking into consideration these approaches:

  • Building Block
    Approach

  • Premium Allocation
    Approach

  • Variable Fee
    Approach

Our Understanding Our Approach
Standard Approach applicable to insurance contracts & reinsurance assets held by insurer. Discounting of CFs, Calculation of Risk Adjustment on CSM. Clear Identification of onerous contracts.
Our Understanding Our Approach
Approach for Short Duration Contracts or re-claims obligation at initial recognition. Evaluation method based on initial recognition and premium release over subsequent measurement.
Our Understanding Our Approach
Applicable to contracts with direct participating features. Automatic calculation of the effective yield rate, projected crediting rate, book yield approach.
  • Cashflow modelling

    Estimates PV of fulfilment cash flows, estimates risk adjustment and CSM at initial recognition and in subsequent measurements.

  • Onerousness Testing

    Onerousness of a group of contracts is determined based on the combined ratio and data elements available at initiation of a contract.

  • PAA eligibility

    PAA eligibility testing at group/ product level.

  • Approaches

    Estimates using the Building Block Approach (BBA), Premium Allocation Approach (PAA) or Variable Fee Approach (VFA).

  • Reserving

    Estimates liabilities for remaining coverage (LFRC), liabilities for incurred claims (LIC) and contractual service margin (CSM).

  • In-house actuarial reserving calculations
  • Customisable and modular solution
  • Vendor and platform agnostic deployment