Long Duration Targeted Improvements Powered by SAP S/4HANA for Financial Products Subledger

Long Duration Targeted Improvements Powered by SAP S/4HANA for Financial Products Subledger

Challenge Accepted

Insurers preparing to comply with Accounting Standards Update No. 2018-12 have many challenges. While the goal of Long Duration Target Improvements (LDTI) is to make financial statements more compatible and transparent, the execution of these new rules is highly complex and impacts actuarial, finance, and IT teams in significant ways. But it also provides an opportunity to reevaluate your processes and upgrade your technology.

Here at msg global, we are working with insurance experts and auditors to provide pre-delivered content to manage the calculations, accounting, and reporting requirements for LDTI utilizing SAP solutions.

SAP S/4HANA Financial Products Subledger (FPSL) provides the backbone, serves as the operational data warehouse, and is the one source of truth for accounting, reporting, and analytics.

SAP Profitability and Performance Management (PaPM) provides the calculation engine for the three key LDTI calculations:

  1. Liability for Future Policy Holder Benefits
  2. Market Risk Benefit Calculation
  3. Standard Amortization for Deferred Acquisition Costs

And with the addition of SAP Analytics Cloud, presentation and disclosure of financial information can also be accommodated.

All three solutions work in harmony to provide ONE integrated solution to the LDTI challenge.

Kerry Hall SAP FPSL

Kerry Hall
Principal Consultant

Learn More About Our LDTI Solution

Our Purpose & Approach

Our implementation services are based on proven structures, methodologies, and best practices derived from our experience helping organizations worldwide implement and integrate SAP solutions. With a proven track record of success, repeatable steps reflect our mastery of the process, ensure consistency, and enable all implementation participants to be engaged in and understand the process.

SAP System Benefits

  • Preconfigured compliance rules
  • Ready-to-use insurance content
  • Centralized subledger
  • Automation for a quicker Close
  • Ongoing software maintenance

What We Offer

  • Project accelerators for rapid ramp-up
  • Role-based activity requirements
  • Actionable delivery documentation
  • Best practices to fully drive implementation
  • Expedited project setup to save time and effort

How Can We Help

We’ll work with you to understand all your options; select the option that best suits your needs, your budget, your schedule, and your preferences; and help you make the right decisions about the service to quickly get your implementation running the way you want it to run.

Contact us today to learn more about how we can help you tackle your accounting and reporting challenges.

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