Accenture (NYSE: ACN) and Oracle today unveiled an integrated technology and services offering that enables insurers to digitize their financial information and meet accounting reporting standards for the International Accounting Standard Board’s (IASB) IFRS 17 and US GAAP Long Duration Targeted Improvements (LDTI).
Combining Oracle’s IFRS 17 and Finance solutions with Accenture’s deep expertise and capabilities, the offering includes preconfigured templates, rules and reports to help insurers address the complexity associated with these accounting standards and ensure compliance.
Effective Jan. 1, 2022, IFRS 17 provides new standards for how insurers recognize revenue tied to their insurance contracts. Similarly, LDTI changes the assumptions insurers use to measure the liability of future policy benefits for traditional insurance contracts.
Many industry observers consider these new accounting standards to be the most challenging financial reporting changes for insurers in decades, requiring innovative approaches using new technology. Together, Accenture and Oracle have created a solution that drive benefits beyond the finance function to the entire enterprise. Recent Accenture research revealed that CFOs who fully harness the power of data and new technologies can drive value, improve efficiency and empower CEOs with strategic insights.
“The changes required from IFRS 17 provide an opportunity for insurers to capitalize on their rich repositories of data and derive more value from advanced analytics,” said Steve Culp, a senior managing director at Accenture and global head of the company’s Finance & Risk practice. “This joint offering provides the first steps on the journey to a full digitization of finance, enabling insurance CFOs to drive the enterprise strategy beyond the borders of the finance function.”
Sonny Singh, general manager and senior vice president, Oracle Financial Services, added, “IFRS 17/LDTI Standards are a historic change to insurance revenue recognition requirements. It presents a unique opportunity for insurers to align and transform disparate business processes and gain greater operational efficiency and insight. Oracle’s modern integrated solution, combined with Accenture’s comprehensive services, will allow adoption of IFRS 17 standards and establish the baseline for a wider insurance modernization initiative.”
The new solution is built into Accenture myConcerto, a fully integrated digital platform that brings together Accenture’s most disruptive thinking, leading industry solutions and Oracle technologies to drive enterprise transformation. It is one of the latest offerings developed through the longstanding Accenture and Oracle alliance, which has spanned more than 25 years. Accenture has been one of Oracle’s leading systems integration partners globally, with more than 54,000 Oracle-skilled consultants around the world who help clients accelerate digital transformation by implementing Oracle-based business solutions and new business processes that develop and evolve as their digital business grows. Accenture is a Global Cloud Elite and Platinum level member of Oracle PartnerNetwork (OPN) and is certified as an Oracle Cloud Excellence Implementer.