Tugu Reasuransi Indonesia (Tugure), one of the largest reinsurance companies in Southeast Asia, has picked SAS to comply with the PSAK 74 standard for the local insurance industry, which will take effect on January 2025.
Based on the International Financial Reporting Standard (IFRS) 17, PSAK 74 is intended to enhance transparency and comparability in financial reporting and is expected to lead to significant changes across the industry.
Significant changes under IFRS 17 and PSAK 74 include how insurance premium income will now be considered obligations, instead of immediate profit. The resulting complexities and rigors in calculations and reporting will require local insurers to overhaul accounting standards and processes.
"Meeting the new reporting standard nearly three years in advance of its implementation will be a competitive edge for any insurance company that can achieve it,” said Dradjat Irwansyah, finance director at Tugure.
Established in 1987, Tugure was initially intended to exclusively serve the insurance needs of Tugu Group. However, the vast growth of the insurance industry in Indonesia has prompted Tugure to expand its scope of services to cover other insurance companies.
Tugure's current business activities include providing services in reinsurance against risks faced by general insurance companies and life insurance companies. Tugure has experienced rapid development as a corporation and gained the confidence of the national and international insurance industry.
“Having a smooth transition to PSAK 74 will enable us to serve our customers better and we are confident that SAS, with its long track record of delivering solutions to insurance companies worldwide, is the right partner for the transition."Dradjat Irwansyah, Tugure
Already in use by many insurance companies overseas, the SAS IFRS 17 solution supports users in a multitude of tasks such as data management (ETL), cash flow calculations, contractual service margins (CSM), journal entries, and disclosure reporting.
This gives local insurers a thorough and robust alternative to customised solutions, generating savings in both financial and work-hour costs, while ensuring compliance agility to PSAK 74 well before it comes into force.
“From data orchestration and analytics, to risk and profitability reporting, insurers can protect their investments in actuarial, accounting and related solutions by integrating key IFRS 17 capabilities," said Febrianto Siboro, managing director, SAS Institute Indonesia.
"SAS enables all of these to help organisations stay ahead of IFRS 17 requirements for compliance without losing visibility."Febrianto Siboro, SAS Institute
"No longer is there a need to spend more than necessary, or cause delays to PSAK 74 compliance, with a customised solution that significantly reduces computational burden from new reporting guidelines," he added.