PWC AND ORACLE
requires companies to measure contracts using up-to-date estimates that reflect cash flow timings and uncertainty around contracts .
She says : “ CFOs who have now overcome the IFRS-17 challenge are seeking to develop key performance indicators ( KPIs ) that they can use to measure these new metrics .
“ Choosing the right KPIs is important because KPIs that insurers previously tracked may not be as relevant moving forward .
“ This is where the financial ratios we have been seeing in the industry so far are about to change globally because the language used by the CFO in an insurance company is changing . It ’ s changing alongside shifts in the underlying metrics .
“ Many insurers are looking at their systems differently today . They ’ re looking at their data and trying to determine whether they can capture these financial ratios in the manner that is being asked for .
“ Eventually , in some countries , there will be requirements to understand how data is flowing in , being stored and how these calculations are eventually getting reported .”
For Chopra , many insurers – particularly CFOs at insurance companies – are waking up to this new reality and seeing the benefits of cloud transformation within their respective organisations .
The crucial role of data to inform decision-making Of course , this is just part of the motivation insurance CFOs have for migrating to the cloud . Meeting the requirements of everevolving regulations can be made far simpler with cloud-based solutions too .
Bowers expands : “ CFOs today should be stewards of data . And , if you go by the regulatory playbook , finance leads the charge in terms of enterprise data and the
56 February 2024