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
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