Automation and enhancement of cost allocation process from an excel-based solution to a vendor automated platform in preparation for IFRS 17
Finance & Reporting:
Sales Finance Function
IFRS and Financial Accounting
Data Analysis and Cost modelling
Data Analysis and Modelling
Technology (vendor tool)
Finance Reporting and Analytics
Define and design cost allocation methodology after performing a detailed AS-IS cost model analysis
Have a clear understanding of the data sources needed for the cost model and potential impact on processes timing and complication
Invest in automated platform (vendor or in-house built)
IFRS 17 is set to update how insurers recognise, measure, present and disclose their insurance and reinsurance contracts to establish standardisation throughout the industry for greater transparency, risk management and comparability of results. An important consideration of IFRS 17 measurement and disclosure is appropriate cost measurement and classification. With the IFRS 17 effective date looming, one of South Africa’s largest insurance institutions set out to automate and enhance their cost allocation processes, not only in preparation of complying with regulation but to also ensure the overall process improvement.
Monocle was an execution partner in implementing the automated cost allocation platform (end to end), replacing the manual excel-based process. This provided a structured foundation that improved overall cost allocation efficiency and ensured accuracy, transparency, auditability and supported IFRS 17 readiness. Throughout implementation, Monocle assisted across the costing lifecycle with specific focus on comprehensive gap assessments from the design of the IFRS 17 solution through to disclosure. This necessitated data identification, sourcing, and automated integration for all required inputs used in the cost models, as well as cost methodology design, testing and implementation of the platform. Upon completion of the build, Monocle ensured effective handover and project embedment.
Automated & advanced cost allocation processes
Granular IFRS 17 data with improved accuracy, transparency and auditability
Custom output & reporting for in-depth analysis by multiple stakeholders
An understanding of the International Financial Reporting Standards and finance processes, the subject matter and concepts involved, and the data required to enable these processes
Technical knowledge of automated cost allocation platform and experience in Microsoft power query for ETL process
Experience as an execution partner to affect change on a project of this scope and size
Monocle has extensive experience in implementing accounting standards and data architectures within the banking and insurance industry. We are expertly positioned to assist insurers in the implementation of their cost allocation and management processes for IFRS 17. With our unique combination of business subject matter knowledge, strategic insights, and detailed understanding of financial data systems we are able to effectively partner with your preferred cost allocation software provider to create a cost solution that is fit-for-purpose and built to create long-term strategic value.
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