NongHyup Life Opens Integrated System in Preparation for IFRS17 Implementation

NH Nonghyup Life announced on the 1st that it will establish a new system in preparation for the introduction of the new International Financial Reporting Standards (IFRS 17).

[Asia Economy Reporter Oh Hyung-gil] NH NongHyup Life Insurance announced on the 1st that it will newly establish a system in preparation for the introduction of the new International Financial Reporting Standards (IFRS17).

By utilizing the actuarial modeling solution (Booster-FMS), it can rapidly calculate insurance liabilities based on fair value, and by adding an integrated assumption management system capable of actual vs. expected analysis and monitoring, it is possible to derive precise results.

During the system development project, NongHyup Life continuously monitored domestic and international IFRS17 regulatory changes and reflected the application of the International Accounting Standards announced for revision in June 2020.

Also, to build the system, since 2018, it has worked with consulting and system integration (SI) partners such as PwC Consulting, Samil Accounting Corporation, AT Kearney, Milliman Korea, Jia Actuarial Corporation, LG CNS, and Asiana IDT.

In particular, the process was subdivided into integrated assumption management, insurance liability modeling, settlement information and expense allocation, and risk management areas, going through five stages of requirement definition, analysis design, development, testing, and stabilization, and conducted integrated testing to thoroughly verify the system's stability.

Hong Jae-eun, CEO of NongHyup Life, said, "Despite the difficult internal and external environment, we put meticulous effort into responding to changes in the new market environment," and added, "I am confident that the foundation for a new management strategy and control system focused on long-term corporate value has been established, which will further enhance competitiveness."