It is truly remarkable because it has functionalities that no other solution has, and it provides flexibility in terms of calculation and reporting that no other solution offers. It features machine learning and has been designed and developed from start to finish with data quality in mind.
Blurred lines of correctness
Lines demarking areas of reasonable and, wrong, or suspicious, financial data have always been blurred. It takes financial reporting expertise and a lot of experience to determine where these demarcation lines are located. Needless to say, they change all the time.
3Blocks PAA deals with this ambiguity by providing you new means to assess the financial reporting data. Our software applies the machine learning algorithms to predict the values of the PAA data points, so they can be analysed against the actual values.
It is all about data
The list of data challenges is long and includes input data being from different source systems, data completeness, management, storage, archiving, access and safety.
SQL Server means increased data security, optimized data storage and data handling.
Our software features predefined business rules with the ability to add new customised database validations.
Data completeness checks included in 3Blocks PAA provide assurance that nothing that is needed for the calculation and reporting is missing.
One record to rule them all
Most of IFRS 17 software solutions available on the market require data on a defined level of granularity. For example all data should be by group or by policy.
3Blocks PAA gives full flexibility in this respect as data is arranged by a record, where a record can be a policy, group, portfolio or any mix of these three.
For example, you may chose to calculate the Liability for Remaining Coverage (LRC) on policy level, but the Liability for Incurred Claims on portfolio level.
Option A, Option B
IFRS 17 provides principles, rather than rules, on how things should be calculated and accounted for. It gives rise to different interpretations, methodology and accounting options to choose from.
3Blocks PAA has flexibility to accommodate different methodology choices you have made. It also gives flexibility in terms of accounting. For example, it allows you to utilise your existing UPR and DAC accounting to produce IFRS 17 accounts.
High level model logic
Python formulas emulated in a friendly Excel format, showing IFRS 17 calculations and results for a selected record. It provides a useful peak into the transformation of the input data into to the results tables. This Excel replica show all the movements on the insurance liabilities and assets.