To help insurance companies comply with the International Financial Reporting Standard (IFRS) 17 and its local counterpart, the PSAK 74, as they take effect on January 1, 2025, local full-service cloud provider Eranyacloud has launched a digital solution with PT SAS Institute.
Under PSAK 74/IFRS 17, financial statements will provide more details and transparency, with insurance premium income no longer immediately recognized as profit. Instead, they will be considered as obligations that are then amortized along with repeated premium forecasts, discounted calculations for present value, and other factors such as risk adjustment.
Already adopted by insurance companies overseas, the SAS IFRS 17 solution assists users in data management (ETL), cash flow calculations, contractual service margin (CSM) calculations, and making journal entries and disclosure reports. To speed up its implementation, the system has been equipped with standard pre-defined features such as: validation methods for completeness and accuracy of data, model data design, CSM calculation engine for GMM, PAA, and VFA approaches, Accounting Event and Chart of Account, Disclosure, Dashboard and Reporting. These processes are orchestrated through workflows to ensure they are executed in a systematic and structured manner.
“Eranyacloud will assist customers through the whole implementation process, from the provision of infrastructure and installation of SAS IFRS17, all the way to compliance with government regulations related to the IT infrastructure,” said Shaane Harjani, CEO of Eranyacloud.
“Implementing the IFRS17 solution requires large infrastructure capacity to store huge amounts of data and to perform highly complex calculations, which is why we have partnered with Eranyacloud to help insurance companies fully comply with PSAK74, while saving months in provisioning infrastructure and application solutions. Together with Eranyacloud, we look forward to enabling businesses in their IFRS17 journey as they scale up in their compliance efforts,” added Febrianto Siboro, Managing Director (Indonesia), PT SAS Institute.
