The implementation of IFRS® 17 is a complex project for any insurer. One of the key project activities is the design and implementation of a Contractual Service Margin (CSM) tool. This is an entirely new concept and there is no established precedent for CSM in financial reporting.
KPMG has found through discussions with clients and contacts, that as of yet, there is no dominant solution for the CSM tool. Some insurers have decided to buy a tool from an external provider, while others have decided to build their own. And many firms have still not yet made a decision.
But whatever solution is chosen, the CSM tool will need to be tested to ensure it is working as expected and providing accurate and reliable information that complies with the principles of the standard. This will be needed as part of the project implementation controls and to satisfy the external auditors.
View the video below to learn more about our IFRS 17 testing application.
To understand more about the features and benefits of the application, please download our slip sheet.