Understand IFRS17’ client challenges to add one opportunity to the business sales pipeline
Moving from 'Learning' to solving a 'Real Business Issue'
Focus on solving a business issue
Learning returns the highest benefit when it is properly applied to solving real business problems. We recommend the line manager and the employee agree on measurable goals that will address known business issues.
The employee might then need to attend a development program such as this workshop. The objective is not just to attend a workshop, but rather to increase the employee’s business and financial acumen, and as a direct result of this development program, identify and help achieve specific, measurable, value-creating performance goals. To illustrate moving from learning-related goals to performance-related goals, we have prepared the following suggestions, which of course should be modified to meet the specific needs of the line manager and employee.
- Issue needs to be solved asap
- Employee is unclear how to do that
- Definition of KPIs to solve the issue
- Training will be recommended to help solve the issue
- Maybe a workshop
- Maybe on-line
- Employee addresses the issue with the newly acquainted knowledge
- Employee shares how it was possible to meet the KPIs
- Issue is solved
Value creating performance
Value-Creating Goal
Thanks to your strong P&C and L&H transaction knowledge, once the client’s needs have been identified and after discussion with the BD, develop two to three new business opportunities that will help your client deal with challenges arising from the implementation of IFRS 17.
Suggested application tasks in order to meet the above-mentioned goal
After assessing the reasons why a client would enter into P&C and L&H structured solutions, present your findings to a junior team member. Secondly, consider the different types of underlying risks Swiss Re may be offered to take on P&C and L&H transactions and assess what you think would be the most to least favorable classes – present your findings to Business Development (BD). Finally, think about a client’s portfolio, in order to answer the question, which clients might be interested in potentially discussing P&C and L&H structured solutions, and why? Discuss your findings with your XFT leader.
Summary
Addressing business issues - in a context of learning - promises to produce impressive ROIs. When we consider all the benefits and costs, this type of training/development investment creates significant value and provides impressive quantifiable returns, both for the employee and for Swiss Re.
Therefore, this approach moves us far beyond "just learning something"; it focuses us on the positive business outcomes by quantifying the expected costs and resulting value creation.Our Thoughts – the Return on Investment (ROI) Calculation
This activity promises a strong ROI of 118%
The sections below reveal our calculation.
Select each thought (+) to learn more about it.
Quantifiable value: Assume that a unit of total sales goal in the market equates to US$100,000,000 which comprises 1,000 individual opportunities, the value of a new opportunity is imputed at US$100,000 (US$100,000,000/1,000).
We assume that the contribution from each new opportunity could be 1%. The value therefore can be calculated this way: US$100,000 x 1%, which equates to US$1,000 in benefit, for one new opportunity. Assume you develop two new business opportunities; this could equate to US$2,000 added value.
Assume the cost of participating in the half-day training is US$300 which is the Swiss Re average cost.
Also assume the opportunity cost for being away from the desk for half a day is US$700. Further assume half a day of work is required to apply the findings and to achieve the above-mentioned performance goal, which adds an additional US$700 opportunity cost for not being productive.
The ROI in this case equates to a high 118% (US$2,000/US$1,700).
Don’t forget this ROI calculation is not considering the above-mentioned non-quantifiable value.
Select each light blue number to discover more.
Prepare online.
Who is this for?
Priority on client facing functions, Products Hub and other enabling functions.
Completing the training options will raise the competency level to "basic". Completing the "20%" and "70%" actions will raise the competency level from "basic" to approaching "proficient".
"To be regarded as a person in your area who has a broad understanding of the IFRS17 accounting principles".
Avoid: Attend workshop xyz
Reinsurance Business Development
Having attended the session "IFRS17 – Introducing the new accounting standard", or equivalent knowledge. And good overview of accounting knowledge.
Learning from others. Exchange. Discuss.
Take this learning to the next level by exchanging with others. Here are recommended social learning activities:- Check out the IFRS Program Ourspace page for the most up to date information on IFRS 17 including industry news, links to publications and trainings.
- Check out the IFRS 17 Ourspace dedicated to client focus
- Get in touch with your local finance and Business Development teams to understand the impacts in your jurisdiction
What do I get out of it?
What’s in it for me (WIIFM)?
Understand the impact of IFRS 17 on our reinsurance clients and reinsurance value proposition
Create value by applying the findings so far. Implement what you have learned. Recommended on-the-job assignments:
- Build an understanding o the implications for our clients due to the new IFRS 17 standard
- Know which reinsurance solutions may impact the client’s financial KPIs in the context of IFRS17
- Discover where IFRS 17 may interact with you in your particular role and understand the local considerations
- Analyze how IFRS17 would affect the financial reporting on a pending (or already implemented) transaction and discuss your findings with a deal team member
- Research the impact of EVM vs IFRS17 at your local entity and present your five key findings to your manager
- Think about consequences for a client adopting IFRS17 in the context of a potential (new) transaction. Discuss your business ideas with a member of Business Development.
