Case Study

IFRS17 Cost Allocation Engine — implementing a robust cost allocation approach for IFRS17 in Alteryx 

Digital & Automation | Insurers | London

The Background

  • UK based insurer undergoing transition to IFRS17 reporting 

  • Cost allocation process for actuals and forecast critical to the overall understanding and signoff of the approach 

  • Cost allocation engine implemented as a prototype in Excel but had not been a priority to implement in a more appropriate technology 

The Challenge

  • Excel based prototype could not cope with the volume of data required for processing when scaling up beyond the prototype 

  • Execution times for iterative testing were impacting the project delivery timeline due to the manual workarounds to accommodate the spreadsheet limitations 

  • Logic was embedded throughout the spreadsheet resulting in opaque logic and requiring extensive time to track and justify the outputs 

The Approach

  • One of our Alteryx Designer certified consultants spent 3 weeks analysing and documenting the existing spreadsheet and building the functionality in a series of Alteryx processing maps 

  • Then a further 3 weeks was spent supporting the testing of the allocation engine including extending the rules now that the Excel limitations were removed and implementing data quality validations and exception reporting 

  • A final 3 week segment involved supporting the full front to back testing runs and supporting the sign-off process and parallel run 

The Impact

  • Full cost allocation runs for both reporting and forecast down from 2 hour run time to sub 1 minute

  • The team were able to focus on the understanding and explaining of the numbers rather than running the process

  • Transparency of rules and detailed controls enabling a straight forward audit discussion

  • Rapid run-times allowing scenario based discussions with the business and ‘what-if’ simulations


Related Case Studies

Insurance finance re-engineering: Addressing the operational risk of activities reliant upon Excel 

Digital & Automation | Insurers

Bordereau processing: Automating bordereau reconciliations and approvals 

Digital & Automation | Insurers

Digital transformation for a fast-growing fintech


Digital & Automation | Fintech

Interested in digital acceleration?

Subscribe to NextWave for occasional email updates on the latest technology, acceleration approaches, news and NextWave events. You can unsubscribe from these communications at any time.

Subscribe for our latest updates